test 2 for final
All of the following are required elements for the development of an effective CRM initiative EXCEPT:
Utilization of MRP
Which of the following modes of cargo transport can be characterized as being the most inexpensive and very slow, yet good for transporting very heavy goods a long-distance?
Water Carriers
Benefits derived from implementing e-procurement systems include all of the following EXCEPT: Group of answer choices Allows buyers to submit bids and suppliers to respond to those bids in real time Increases the accuracy in communication between buyers and suppliers Creates numerous additional job opportunities in the purchasing department Tracking bids and transactions is easier and faster
Creates numerous additional job opportunities in the purchasing department
The primary purpose of the basic economic order quantity (EOQ) model is to:
None of the above
Which of the following is NOT consistent with a decentralized warehousing system?
None of the above
Which one of the following is NOT a reason for firms to carry inventory?
To increase production change/setup costs
Which of the following is NOT a reason for supplier recognition programs? To help suppliers' reputation in the marketplace To select the best suppliers To encourage suppliers to be more innovative To reward suppliers for excellent performance
To select the best suppliers
Independent demand is the:
Demand for a firm's end products.
Returns management is also known as _______.
Reverse logistics
The term Supply Chain Management and the field of study it represents today seems to have emerged in the: Group of answer choices 1960's 1970's 1980's 1990's
1980
The first major transportation regulation in the U.S. was which of the following
Granger Laws
Before supplier relationship management (SRM), buyers typically spent 40% of their time on expediting orders. After SRM implementation buyers spent about: Group of answer choices 10% of their time on expediting orders 20% of their time on expediting orders 30% of their time on expediting orders None of the these
10% of their time on expediting orders
Which of the following are intermodal transportation alternatives?
All of the above
Which of the following legislative acts is NOT in support of transportation deregulation?
Staggers Rail Act
Which of the following would be a good reason to outsource (buy) versus making? Group of answer choices To utilize existing capacity within a company's own firm A firm lacks the technology or expertise to produce an item To have more direct control over the design and production of an end item No competent supplier presently produces the needed item
A firm lacks the technology or expertise to produce an item
Tire manufacturer Firebridge sells tires to retail firm A. Average annual sales for firm A is $55,000. Average profit margin is 15%. The expected lifetime is 10 years. Using a discount rate of 15 percent, calculate the Customer Lifetime Value of firm A and choose the closest answer below:
41,405
Use the information below to calculate the number of orders per year when using the EOQ: Annual demand for an item is 43,000 units The cost to place an order is $200 The per unit cost of the item is $50.00 The annual holding rate is 35%
49
A fair trade product refers to one that is manufactured or grown by a disadvantaged producer in a developing country that receives for its goods. Bitcoin A fair price An imported product Freedom of association
A fair price
Which of the following would refer to the 80/20 rule when applied to the ABC inventory control system?
80 percent of the total annual $ usage is accounted for, by 20 percent of the items.
Which of the following can be used as a punishment for suppliers that perform poorly? Group of answer choices Elimination of future business with the focal firm Downgrade the supplier's status Billback penalty All of these
All of the Above
Which of the following is a trend in ethical and sustainable sourcing? Using suppliers who are reducing their carbon footprint Discontinuing purchases from firms that use unacceptable labor practices Reducing the number of delivery miles traveled All of these
All of the these
Which of the following is one of the most basic and important activities of CRM?
Segmenting customers
Which of the following is a direct benefit from the adoption of NAFTA?
An increase in trade between U.S., Canada, and Mexico
What inventory factor may be omitted from the basic EOQ derivation because it is a constant?
Annual purchase cost of goods
The following is an example of the bullwhip effect: Group of answer choices Barkley's produces a defective product and thus realizes an excessive increase in consumer returns Barkley's products are so successful that it adds a new retailer for distribution Barkley's incorrectly anticipates consumer demand resulting in stockouts at several popular retailers Barkley's is unhappy with the performance of a distributor which causes a chain-reaction of replacements to companies involved in its supply chain
Barkley's incorrectly anticipates consumer demand resulting in stockouts at several popular retailers
Which of the following would be considered a dependent demand item?
Bicycle tires used to assemble a bicycle
The continuing cycle of erratic demand causing forecasts to include safety stock which in turn magnify supplier forecasts and cause production planning problems is known as: Group of answer choices Supply chain management Process integration Back-shoring Bullwhip effect
Bullwhip effect
Developed in the 1990's as a popular way of developing radically new business processes in an effort to reduce waste and increase performance is referred to as: Group of answer choices Process integration Benchmarking Business process reengineering Vertical integration
Business process reengineering
_______________ carry the majority of the world's water-transported manufactured goods.
Containerships
A practical independent measure firms can take to improve information security is:
Continuously monitor employee desktop applications, e-mails and phone calls
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:
Crossdocking___________________ are for-profit organizations that contract out or lease a wide range of light manufacturing, warehousing, and distribution services to other companies.
Companies work very hard to reduce the number of customers who don't return. This customer defection is often referred to as:
Customer churn
Which of the following customer service elements can be classified as an example of posttransaction elements?
Customer complaint resolution
CRM systems allow organizations to identify which customers have stopped purchasing products or services, so that the organization can target those former customers for future promotions and/or perhaps to investigate why they stopped purchasing in the first place. This CRM attribute is called:
Customer defection analysis
Which of the following activities would fall under the foundational element of operation? Group of answer choices Distribution network Supplier management Demand management Third-party logistics services
Demand management
The primary goals of purchasing include all EXCEPT: Group of answer choices Secure materials at the lowest cost Maximize customer satisfaction Improve the quality of finished goods produced Ensure the highest quality raw materials are purchased
Ensure the highest quality raw materials are purchased
The purchasing department at Big Horn Sheep Corporation decided to intentionally increase purchases from small, underdeveloped nations. This decision can be considered: Illegal Unethical Utilitarianism Ethical Sourcing
Ethical Sourcing
______________ considers the public consequences of organizational buying. Group of answer choices The bullwhip effect Ethical sourcing Benchmarking Vendor managed inventory
Ethical sourcing
When an organization attempts to offer the right products and services to customers at the right time through the offer of individual promotions tied to specific events like birthdays and anniversaries, this is referred to as:
Event-based marketing
Which of the following can happen as a result of the bullwhip effect? Group of answer choices Increase in defective products Excess costs for each firm in a supply chain Decreased levels of safety stock Quicker distribution to warehouses
Excess costs for each firm in a supply chain
All of the following are recommended for designing and implementing a successful CRM program EXCEPT:
Expect employees to 'learn on the job' and adapt their way of working
While most public procurement is focused on goals like those of purchasing departments in the private sector, U.S. federal government purchases must comply with the: Group of answer choices Services and Materials Acquisition Act Fair Standards and Equitable Purchases Act Federal Code of Conduct for Procurement Federal Acquisition Regulation
Federal Acquisition Regulation
Direct benefits of ISO 14000 include: Reduced defect rates Improved on-time delivery rates Reduction of pollution emissions All of these
Reduction of pollution emissions
Which of the following acronyms is NOT paired with its correct "translation?" Group of answer choices TQM − Total Quality Management JIT − Just-in-Time TLS − Third-party Logistics Services ERP − Enterprise Resource Planning
TLS − Third-party Logistics Services
Which of the following marked the end of the initial push by Congress to deregulate the entire U.S. transportation industry?
The Shipping Act of 1984
The use of environmental supplier certification programs assists companies by which of the following? Identifying strategic alliance candidates Identifying companies who are the most popular with consumers Helping communities who are in jeopardy of plant closures All of the above
a. Identifying strategic alliance candidates
Which of the following is a disadvantage of carrying too much inventory?
it creates an unnecessary waste of scarce resources.
When demand and delivery lead time are known and constant, the reorder point is the ____.
demand during the delivery lead time
If an item is ordered using its economic order quantity, the annual carrying cost should be:
equal to the annual ordering cost.
In the ABC Inventory Matrix shown, inventory in area Y suggests:
inventory that matches sales.
A ___________________ consolidates large numbers of small shipments to fill entire truck trailers or rail cars to achieve truckload or carload transportation rates.
Freight forwarder
Which one of the following statements regarding the economic order quantity (EOQ) is true?
If an order quantity is larger than the EOQ, then the annual holding cost will exceed the annual ordering cost.
The benefits of implementing an effective supplier certification program include all of the following EXCEPT: Building long-term beneficial relationships Increasing supplier base Improving responsiveness Recognizing excellence
Increasing supplier base
Your top sales executive leaves your company to work for a competitor. Fortunately, all of her notes regarding prior dealings with customers have been captured in a:
Knowledge management system
Sustainability reporting is ______________ for American companies: Required in the U.S. Mandated quarterly Required every 3 years Largely a voluntary effort
Largely a voluntary effort
All of the following are reasons for the increasing use of ethical and sustainable sourcing practices EXCEPT: Global population growth Increasing environmental awareness Legislation requiring corporate ethical and sustainable sourcing Consumers' desires for better corporate responsibility
Legislation requiring corporate ethical and sustainable sourcing
________creates the efficient flow of goods between supply chain partners, allowing profits and competitive advantage to be maximized.
Logistics
Lubricants for production equipment which are not parts of the final products are called:
Maintenance, repair and operating supplies
One operational method for managing inventory is the implementation of a software system which can be referred to as: Group of answer choices Material requirements planning (MRP) Demand capacity tracking (DCT) Inventory sourcing (IS) Demand process reengineering (DPR)
Material requirements planning (MRP)
The use of quick response codes (QR Codes) to retrieve marketing information is a type of:
Mobile marketing
________________ are the most flexible mode of transportation and account for 70 percent of all the freight tonnage moved in the U.S.
Motor Carriers
Blanket or open-end purchase orders are suitable for buying Group of answer choices Computers Heavy equipment Custom built components Office supplies
Office supplies
Petty cash is being phased out in favor of: Hard cash A blank check P-card Score-carding
P-card
Which of the following is TRUE? Performance metrics and personal business relationships are both keys to building successful partnerships. ISO 75000 is the supplier award given to the highest rated supplier in Japan. The key to successful partnerships is developing performance measures with weights greater than 3.50. SRM software modules are very affordable (less than $50,000) and can be implemented with a week.
Performance metrics and personal business relationships are both keys to building successful partnerships.
Your company allows customers to "opt-out" of receiving email advertisements. This is referred to as:
Permission marketing
A form of purchasing that is placed directly to the supplier and suitable when firms use the same components to make standard goods over a relatively long period of time is referred to as: Material requisition Purchase requisition Planned order release Traveling requisition
Planned order release
Field failures, loss of goodwill, a decreased reputation, and warranty costs can all be classified as: Pre-transaction costs Post-transaction costs Transaction costs All of these
Post-transaction costs
You are a manager at Sunnydale Appliances. A customer who recently purchased a dishwasher contacts you with a problem and requests warranty information. According to the text, this is an example of:
Posttransaction customer service
Costs associated with investigating alternative suppliers and investigating alternative delivery options can be classified as: Pre-transaction costs Post-transaction costs Transaction costs All of these
Pre-transaction costs
Which of the following is NOT an assumption of the economic order quantity (EOQ) model?
Production and use occur simultaneously.
Which of the following refers to the measurement of the impact of change in purchase spend on a firm's profit before taxes, assuming gross sales and other expenses remain unchanged? Group of answer choices Break-Even Analysis Profit-Leverage Effect Direct Offset Leveraging Purchase Volume
Profit-Leverage Effect
___________________ are for-profit organizations that contract out or lease a wide range of light manufacturing, warehousing, and distribution services to other companies.
Public warehouses
According to the SCM profile Honda ___________ based on a supplier relations index developed by Planning Perspectives. Ranked lower in 2015 than 2014 Ranked near the bottom in 2015 Ranked near the top in 2015 Ranked fifth in 2015
Ranked near the top in 2015
Inventory Turnover can be calculated by: Group of answer choices Ratio of cost of goods sold over average inventory cost Ratio of average inventory cost over cost of goods sold Ratio of inventory days in stock over average inventory cost Ratio of average inventory cost over inventory days in stock
Ratio of inventory days in stock over average inventory cost
Which of the following is a reverse logistics activity: Group of answer choices Delivering finished goods to your customer Recycling products and components Developing a collaborative relationship with your supplier Managing the quality of products
Recycling products and components
When a product is purchased which is complicated or highly technical a ______________may be issued instead of a request for quotation. Request for proposal Purchase order Contract for sale Sales order
Request for proposal
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
When using a Weighted Criteria Evaluation System to evaluate suppliers, all of the following are true EXCEPT: Select the key dimensions of performance based on what is important to the end consumer The weights for all dimensions must sum to 1 or 100% Evaluate each of the performance measures on a rating between zero and one-hundred Multiply the dimension ratings by their respective important weights and then sum to get an overall weighted score
Select the key dimensions of performance based on what is important to the end consumer
The following strategy is usually employed by lean organizations in an effort to ensure continued quality compliance among suppliers and with internal production facilities: Six Sigma MRP II 3PL CAPS
Six Sigma
Which of the following illustrates Forward Vertical Integration? Group of answer choices Microsoft starting a new division that designs and manufactures clothing Ford automotive buying additional machines for production Subway sandwich company buying a bakery to make the bread for their sandwiches. Sony buying trucks to deliver their finished goods inventories to their customers' warehouses
Sony buying trucks to deliver their finished goods inventories to their customers' warehouses
Which of the following statements is TRUE? Supply chain management was invented by the auto manufacturing industry Strategic partnerships are seen as one of the foundations of supply chain management Purchasing is seen as the final and most difficult step in the supply chain Service response logistics is the digital distribution of services
Strategic partnerships are seen as one of the foundations of supply chain management
An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as: Quality Systems Certification Supply Management Supplier Inspection Supplier Certification
Supplier Certification
Which of the following activities allows buyers to assume the supplier will meet certain product quality and service requirements? Group of answer choices Business process reengineering Right-shoring Supplier certification Distribution network
Supplier certification
An internal or external event that causes a disruption or failure of supply chain operations is an example of Group of answer choices Bull-whip effect Back-shoring Supply chain risk Six Sigma quality management
Supply chain risk
According to the text, the FOUR important elements of the supply chain are: Group of answer choices Purchasing, manufacturing, transportation, retail stores Supply, operations, logistics, integration Purchasing, manufacturing, logistics, transportation Supply, operations, manufacturing, distribution
Supply, operations, logistics, integration
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". Group of answer choices Reverse logistics Enterprise resource planning Sustainability Strategic partnerships
Sustainability
Convincing your supplier to cutting back on packaging, fuel, or electricity is an example of: Ethical sourcing Sole sourcing Sustainable sourcing Global sourcing
Sustainable sourcing
You work for a company that 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 of the following would be considered an act of deregulation?
Trucking Industry Regulatory Reform Act − Motor carriers freed from filing rates with the Interstate Commerce Commission
The textbook describes a perfect order as one in which all of seven of the rules in the "Seven Rs Rule" are satisfied. List the seven R's.
Your Answer: 1. Right Product 2. Right Quantity 3. Right Condition 4. Right Place 5. Right Time 6. Right Customer 7. Right Cost
Which of the following is true under the Periodic Review System?
a higher level of safety stock is needed to buffer against uncertainty in demand over a longer planning horizon, compared to the EOQ system
NAFTA and the WTO are trade organizations seeking to reduce tariff and non-tariff barriers among its member countries.
true
