BUAD 331 Final Exam

Which of the following factors typically contribute to increased delays and variability of lead times in the global supply chain? A. A lean fulfillment model B. An agile fulfillment model C. The use of cross-docking and flexible fulfillment strategies D. Complexity required for movement of goods between countries E. Complexity of exchanging different currencies

A. A lean fulfillment model

Procurement, conversion, and logistics are activities that must be done to fulfill the exchange commitment by creating form, time, and place value. A. True B. False

A. True

Demand for fashion goods are difficult to predict. Zara produces standardized, un-dyed clothes beforehand, and then dyes clothes into different colors once end-customer demand is realized. Why does Zara do this? A. Zara postpones the dyeing process to help match supply capacity to uncertain demand. B. Producing and shipping un-dyed clothes creates the necessary inventory for demand. C. Fashion goods have long lifecycles and economies of scale are needed. D. Zara has advanced forecasting tools necessary to predict demand for each color.

A. Zara postpones the dyeing process to help match supply capacity to uncertain demand.

Lean order fulfillment differs from traditional order fulfillment in that lean utilizes: A. smaller inventory deployment and shorter cycle times. B. smaller inventory deployment and longer cycle times. C. larger inventory deployment and shorter cycle times. D. larger inventory deployment and longer cycle times. E. There is no difference between lean and traditional order fulfillment.

A. smaller inventory deployment and shorter cycle times.

2025, firms will increasingly partner with key customers to co-create ___________ form, time, and place elements, utilizing advancements in information exchange to customize specific value bundles for customers based on what customers are willing to pay. A. value-added B. exceptional C. profitable D. non-value-added

A. value-added

What dimension of the country assessment framework involves the strength of supply chain support businesses in the region?A.Competency B.Economy C.Politics D.Infrastructure

A.Competency

Supply chain management has a widely accepted definition that does not vary substantially between countries. A. True B. False

B. False

The demand penetration point is the place or stage in the supply chain where ________ are accepted and fulfilled. A. Honey Nut Cheerios B. Full postponement C. Consumer orders D. Aggregated forecasts

C. Consumer orders

By 2025, Dr. Stank and the team predict that more companies will stick to their ___________ and many activities will be outsourced to the broader supply chain to leverage the expertise of external organizations. A. Highest selling products B. Use of robotics C. Preferred transportation routes D. Core competencies

D. Core competencies

Which term refers to products that are sold outside of an official distribution channel, often causing problems for the original manufacturer? A. Green Market B. Black Market C. White Market D. Gray Market

D. Gray Market

A strike has just occurred at a key supplier. Which phase is the firm most likely dealing with? A. Pre-disruption phase B. Receipt phase C. Domino phase D. Pre-Due date phase

D. Pre-Due date phase

What is the best way to categorize risk? A. Calculate exposure score using both strategic and financial dimensions B. Calculate exposure score using both mitigation and management responses C. Calculate responsiveness score using both exposure and mitigation responses D. Calculate mitigation score using both responsiveness and exposure dimensions

A. Calculate exposure score using both strategic and financial dimensions

Two-thirds of the world's countries including France and Germany use what type of law as the basis for their legal system? A. Civil Law B. Common Law C. Trade Law D. International Law

A. Civil Law

What innovation is driving information visibility and is defined by the use of computing driven by artificial intelligence to leverage massive amounts of both structured and unstructured data to assist decision makers? A. Cognition B. ERP C. Unstructured data D. Internet of Things

A. Cognition

Which framework is most useful for companies wanting to build an initial assessment of the general operating environment in a country? A. EPIC B. CAGE C. SWOT D. FARM

A. EPIC

What key product type is marked by contribution margins of 5 to 20 percent, six- to twelve-month lead times, and low product variety? A. Functional B. Computers C. Innovative D. Luxury E. Automobiles

A. Functional

Zamtec Company has a supplier that is very close to bankruptcy (it is inevitable). The supplier provides products that are extremely critical to Zamtec and is a single source of supply for these products. What cell in a risk matrix best describes the risk they are facing? A. High/critical B. Medium high C. Medium D. Low

A. High/critical

Noodles & Company uses Coca-Cola Freestyle beverage machines that allow people to select from more than 100 regular and low-calorie brands. What kind of order fulfillment technique is Coca-Cola Freestyle beverage machine using? A. Hybrid lean and agile B. EOQ C. Lean D. Agile

A. Hybrid lean and agile

Flaxmaster Company has a supplier that experiencing financial instability, but is not approaching bankruptcy. Through its actions, how can Flaxmaster affect the risk it is facing relative to its supplier? A. It can increase the probability of disruption B. It can decrease the probability of disruption C. It can increase the impact of disruption D. It can decrease the impact of disruption E. Both b and d F. All of the above

A. It can increase the probability of disruption

Volunator Company has recently been trimming their supply base so they could work more closely and collaboratively with their suppliers. What risk driver have they made more prominent in their new design? A. Node criticality B. Complexity C. Density D. Both a and b E. All of the above

A. Node criticality

Blasteren Company has been monitoring the weather very closely as a hurricane is potentially headed towards their manufacturing plant in Florida. What phase of disruption best describes our current situation? A. Pre-disruption phase B. Pre-due date phase C. Buffer phase D. Domino phase

A. Pre-disruption phase

By 2025, it will become common for firms to utilize decision processes that enable them to _________ account for constantly changing competitive characteristics. A. Proactively B. Subjectively C. Objectively D. Retroactively

A. Proactively

What is one major issue that still exists in a lean fulfillment model? A. Requirement to hold inventory in anticipation of customer orders B. Longer lead times C. Greater uncertainty in raw material inventory D. Need for fewer deliveries

A. Requirement to hold inventory in

What would be the best approach to use if a manager wants to assess risk across key locations across the globe? A. Spatial risk assessment B. 2-by-2 matrix C. 3-by-3 matrix D. 10-by-10 matrix

A. Spatial risk assessment

Which of the following is not a technique for fulfilling customer orders? A. Supply cycle time B. Anticipate form, time, and place C. Full Postponement D. Make to stock, postpone time/place

A. Supply cycle time

What is the idea in which both sides to an agreement commit the resources required to achieve key outcome metrics that are mutually beneficial? A. Vested relationships B. Negotiations C. Agreements D. Global relationships

A. Vested relationships

The economic order quantity (EOQ) model aims to: A. calculate the optimal amount of inventory to be reordered by balancing ordering costs with carrying costs. B. minimize inventory costs by eliminating safety stock. C. minimize total supply chain landed costs. D. establish the optimal amount of inventory to be reordered by balancing carrying costs with transportation costs.

A. calculate the optimal amount of inventory to be reordered by balancing ordering costs with carrying costs.

What is true about events and disruptions? A. All events result in disruptions B. All disruptions stem from events C. Events and disruptions are always the same thing D. Events and disruptions are unrelated

B. All disruptions stem from events

What are the four steps in quantifying risk exposure? A. Create a plan, enable sourcing efforts, meet regulatory standards on quality and improve flexibility B. Determine the impact of the risk, likelihood of the risk, status of actions taken to reduce the risk, and exposure based on impact, likelihood and preparedness C. Determine resources for high risk mitigation, forecast mitigation effectiveness, create a cross-functional governance structure and incorporate effective KPIs D. Determine which areas are ripe for theft, enable theft tracking devices, involve government agencies to solve problems, continue to do business in these areas

B. Determine the impact of the risk, likelihood of the risk, status of actions taken to reduce the risk, and exposure based on impact, likelihood and preparedness

What is the biggest cause of difficulties in working with another culture? A. Language differences B. Different ways of making decisions and approaching business C. Physical distance to the market D. Not showing up to meetings on time

B. Different ways of making decisions and approaching business

Labor laws in the United States are generally seen to be more-friendly to the international worker than those in most other countries. A. True B. False

B. False

Supply chain solutions that work in one region can be repeated as long as you have the technology systems to connect all supply chain partners. A. True B. False

B. False

A strike has just occurred at a seaport. What phase of disruption are we most likely in at this point in time? A. Pre-disruption phase B. Pre-due date phase C. Buffer phase D. Domino phase

B. Pre-due date phase

The move to lean and then responsive value creation requires a "paradigm shift" from a ________ mentality to a customer ________ mentality. A. Hybrid style, retention B. Product-focused push, demand-focused pull C. Demand-focused push, product-focused pull D. Product-order completion, time-saving

B. Product-focused push, demand-focused pull

In high-end restaurants, steaks are generally cooked after the wait staff place the order to the kitchen with customers' preference. Which of the following techniques best describes the fulfillment of steak orders to the final customer? A. Anticipatory B. Responsive C. Postpone D. Lean

B. Responsive

What type of supply chain would be most appropriate during the introductory and growth stages due to demand being highly unpredictable? A. Efficient B. Responsive C. Multiple Hybridized D. Semi-functional

B. Responsive

What negative impact can result from large lot, long lead-time operations? A. Customers are overjoyed. B. The items are in places and at times customers don't want them. C. The company's sales increase too much. D. The company's profits increase too much.

B. The items are in places and at times customers don't want them.

Define order cycle time. A. The total cost of ownership combined with the customer value of a product B. The total elapsed time from when the customer first recognizes need to when that need is ultimately fulfilled C. The total elapsed time from when the customer first orders the product to when that product is shipped to them D. None of the above

B. The total elapsed time from when the customer first recognizes need to when that need is ultimately fulfilled

Leading firms now recognize that they must cultivate relationships with suppliers and ensure profitable operations for all enterprises in the supply chain in order to gain the access to key resources required to optimize _______________. A. Revenue B. Total relevant value C. win-lose relationships D. Total supply

B. Total relevant value

RFID is a technology that was discussed as an enabler of which capability? A. Risk assessment B. Warning capabilities C. Mitigation capabilities D. Contingency capabilities

B. Warning capabilities

The EPIC Framework is most useful when a company is trying to build ________________. A. a new warehouse B. an initial assessment of a countries operating environment C. new insights into the US labor market D. a detailed assessment of a specific foreign market

B. an initial assessment of a countries operating environment

The legal system used in the United States is based on: A. Napoleonic law. B. common law. C. civil law. D. code law.

B. common law.

ABC Company anticipates a pending event and is able to re-route product flow to avoid being disrupted. ABC Company supply chain exhibits A. resiliency. B. continuity. C. both resiliency and continuity.

B. continuity.

By 2025, process integration should extend to ___________ organizations involved in the overall value creation process. A. internal B. external C. consulting D. finance

B. external

Bill Simon, former CEO of Walmart North America, said that what organizations really need today are supply chain managers who can __________ in response to changing conditions. A. increase profits B. innovate C. implement technology D. lead mergers and acquisitions

B. innovate

In relation to the overall supply chain, ______ place a priority on cost savings while _______ place a priority on doing whatever necessary to deliver form, time, and place as promised on a specific order. A. downstream operations, upstream operations B. upstream operations, downstream operations C. marginal operations, radical operations D. None of the Above

B. upstream operations, downstream operations

If average daily demand for a product is twelve units and average lead time for an order to arrive is four days, what is the reorder point (ROP) for the product? A. 16 units B. 12 units C. 48 units D. 4 units

C. 48 units

What fundamental mechanisms are needed to manage disruptions? A. The ability to discover that disruptions are pending or realized B. The ability to recover from disruptions C. Both a and b

C. Both a and b

Cahill Company has found out that the shipment of Component # 127 will not be arriving at their plant. Shop floor operators are pulling the needed Component #127 out of existing stock. What phase of disruption best describes the current situation? A. Pre-disruption phase B. Pre-due date phase C. Buffer phase D. Domino phase

C. Buffer phase

A natural disaster occurred, but Company ABC's supply chain continued to operate at a normal level. What does this exhibit? A. Disruption B. Resiliency C. Continuity D. Both b and c E. All of the above

C. Continuity

Which of the following is not an effective way to develop a risk management culture? A .KPIs linked to risk management B. Cross functional governance structure C. Escalate issues of non-compliance D. Connection to commercial leadership

C. Escalate issues of non-compliance

Products that are sold outside of normal distribution channels are referred to as "____________". A. White Markets B. Black Markets C. Gray Markets D. Blue Markets

C. Gray Markets

Which of the following is not one of the three questions a manager should ask when making an order fulfillment decision? A. Where should we position the product? B. What should we produce or purchase? C. How should we price the product? D. How much should we produce or purchase?

C. How should we price the product?

One of the most dramatic developments that promises to challenge the creativity of supply chain managers is related to advances in the degree and timeliness of ___________ that can be shared across the supply chain. A. Money B. Products C. Information D. People

C. Information

What key product type is marked by contribution margins of 20 to 60 percent, one- or two-day lead times, and high product variety? A. Functional B. Raw materials C. Innovative D. Luxury E. Purses

C. Innovative

Which of the following was NOT discussed as examples of disruption impacts? A. Shortage of critical inputs B. Delays in product completion C. Management stress and turnover D. Loss in shareholder value

C. Management stress and turnover

Having two manufacturing plants that can make the same product best exhibits which capability? A. Risk assessment B. Warning capabilities C. Mitigation capabilities D. Contingency capabilities

C. Mitigation capabilities

Littlejohn Company sources a critical component from a supplier in China and a supplier in Mexico. What type of continuity/resiliency capability does this best represent? A. Risk assessment B. Warning capabilities C. Mitigation capabilities D. Contingency capabilities E. Both A and C

C. Mitigation capabilities

It took Supply Chain X a total of 4 weeks and Supply Chain Y a total of 6 weeks to return to a normal operating level after being disrupted. When compared to Supply Chain Y, Supply Chain X exhibited: A. More continuity B. Less continuity C. More resiliency D. Less resiliency E. Both a and c

C. More resiliency

______ added time is the percent of total cycle time that a product or service may spend waiting to have form, time, or place value added to it. A. Late shipment B. Product cycle C. Non-value D. Value

C. Non-value

Which supply chain strategy is most popular with companies today? A. Purely global manufacturing with very few global production locations B. Purely local manufacturing with production in every market C. Regional strategy that groups countries into clusters D. High-tech strategy that uses software to overcome the problems

C. Regional strategy that groups countries into clusters

What innovation is driving information visibility and is defined by soft data available via social media that systems are increasingly able to cull to find patterns? A. Cognition B. ERP C. Unstructured data D. Internet of Things

C. Unstructured data

In 2000, management predominately viewed the value of the supply chain emerging from operational efficiency and _________. A. moving products B. improving sales C. cost reduction D. lean six sigma

C. cost reduction

By 2025, best-in-class measurement systems will assess success based on the profitability of key customer segments and ____________ service levels to the price sensitivity of each segment. A. buying B. fabricating C. tailoring D. marking up

C. tailoring

When was the World Trade Organization founded? A. 1785 B. 1895 C. 1905 D. 1995

D. 1995

What is the economic order quantity (EOQ) in this system? (Graph with order quantity of 400 units) A. 5 days worth of inventory B. 10 units of inventory C. 200 units of inventory D. 400 units of inventory

D. 400 units of inventory

Which is not an example of a supply chain disruption for Toyota? A. Toyota enacting a voluntary recall B. The 2011 earthquake that forced Toyota and Honda to stop production C. The truck carrying a small load of Corollas being stolen from a truck stop D. A competitor's sales cause Toyota's forecasted demand to drop

D. A competitor's sales cause Toyota's forecasted demand to drop

For which set of products is risk mitigation planning most important? A. High End Electronics B. Weaponizable Products C. High Value Pharmaceuticals D. All of the Above

D. All of the Above

Disruptions can involve any of the following except? A. Unsafe products that cause a recall B. Counterfeit parts C. Shortage of needed inputs D. All of the above

D. All of the above

Fibs Company operates a supply chain that spans the globe. This supply chain can be: A. A source of competitive advantage B. A source of potential disruption C. A source of significant risk D. All of the above

D. All of the above

What events can result in a supply chain disruption? A. Natural disasters like floods B. Supplier bankruptcy C. Plant fire at a supplier D. All of the above

D. All of the above

What negative outcomes can result from large lot-sized, long lead-time operations? A. Customers don't want the items. B. The items are in places and at times customers don't want them. C. Unsold products are sold at reduced prices or scrapped altogether. D. All of the above

D. All of the above

What type of company will likely work with international supply chains? A. Large multinational company B. Regional company C. Small business D. All of the above

D. All of the above

What were ways discussed for a company to build a more resilient supply chain? A. Educating and training of the workforce B. Learning from failure C. Simulating disruptions D. All of the above

D. All of the above

What new megatrend combines the capability to support real-time data with predictive data analytics in order to anticipate and alleviate supply chain breakdowns before they occur, based on probability distributions? A. Robotics B. Automated warehouses C. Automated manufacturing D. Autonetic technology

D. Autonetic technology

When determining the potential for the likelihood of a particular event, a manager may rely on: A. past impacts in terms of cost. B. historical information relative to past frequencies. C. subjective assessments based on knowledge. D. Both B and C E. All of the above

D. Both B and C

Lanyard Company has a single supplier that provides a critical raw material. This situation could represent: A. A strength of the supply chain in terms of being robust B. An opportunity to work closely with the supplier to create mutual value C. A threat that could result in disruption D. Both b and c E. All of the above

D. Both b and c

Auto Company's shipment of parts were stopped due to a railroad accident. The parts were lifted from the rail car by helicopter and flow to the assemble plant. Which capability that this best exhibit? A. Risk assessment B. Warning capabilities C. Mitigation capabilities D. Contingency capabilities

D. Contingency capabilities

Ordering supplies twice per year vs four times per year can result in _______ due to __________? A. Shorter lead-times, higher set-up or ordering costs B. Higher ordering costs, lower transportation costs C. Higher inventory carrying costs, lower marginal costs D. Higher carrying costs, higher average inventory levels E. Lower inventory carrying costs, lower average inventory levels

D. Higher carrying costs, higher average inventory levels

The _______ was created as an international agency to oversee the new exchange rate system and to help bridge difficulties and financial crises in individual member companies. A. GATT B. WTO C. ITC D. IMF

D. IMF

_________________, defined by machines that are connected to each other so that they can exchange data in real time, is driving information visibility. A. Cognition B. ERP C. Unstructured data D. Internet of Things

D. Internet of Things

Ted wanted to paint his upstairs hallway. He selected 4 different colors of brown/ beige and chose "Puppy Paws," which Lowe's mixed for him on site. This method of order fulfillment is an example of ________. A. Time postponement B. Place postponement C. Logistics postponement D. Manufacturing or form postponement

D. Manufacturing or form postponement

A manager can ________ the probability of natural disaster in the short term. A. Increase B. Decrease C. Both increase and decrease D. Neither increase or decrease

D. Neither increase or decrease

Ted's Wicked Dive Shop needs to put together a re-order plan for breathing regulators. Given that this product is high cost and highly customized in order to meet the unique demands of different divers, Ted should utilize which of the following strategies? A. Order regulators when all existing stock reaches the re-order point (ROP) B. Order product from the supplier that gives him the best price at the time of order C. Order regulators twice per year to keep set-up and order placement costs to a minimum D. Order regulators based on actual customer orders and work with supplier-partners to quickly configure and ship the regulators directly to customers E. Order regulators in bulk using a manufacturing demand forecast model coupled with a long lead-time based EOQ to take advantage of manufacturing and transportation discounts

D. Order regulators based on actual customer orders and work with supplier-partners to quickly configure and ship the regulators directly to customers

Most supplier organizations only measure order cycle time from when they ______ till when they ship an order. A. Receive a customer service report B. Mine material C. Plan Production D. Receive an order

D. Receive an order

Which of the following is NOT a characteristic of an efficient supply chain? A. Supply predictable demand B. Maximize performance and minimize cost C. Generate high turns to minimize inventory D. Select primarily for speed, flexibility, and quality E. Select primarily for cost and quality

D. Select primarily for speed, flexibility, and quality

Ted and his friend Matt start a new company called Crabman Auto Parts. They have heard about agile order fulfillment and are interested in implementing it to decrease costs. Which of the following best describes the strategy Crabman Auto Parts should follow to take advantage of agile order fulfillment? A, Increase variability of demand by running frequent promotional campaigns and discounts for select products B. Purchase off-season products in bulk to take advantage of manufacturer's discounts C. Increase complexity in the supply chain to ensure products are made to automobile manufacturer's strict specifications D. Synchronize information exchange across the supply chain and form strategic relationships with key customers and suppliers E. Select suppliers based on lowest unit purchase price regardless of delivery reliability

D. Synchronize information exchange across the supply chain and form strategic relationships with key customers and suppliers

What is the most common way that countries agree to increase trade? A. Through unilateral removal of tariffs on imports B. Through the GATT treaty agreement C. Through WTO negotiations D. Through negotiating bilateral or multilateral FTAs

D. Through negotiating bilateral or multilateral FTAs

Improving network visibility is a key element of risk management. Which of the following provides an example of this? A. Reducing process variability B. Implementing a Six Sigma methodology C. Giving a high priority to supply chain risk management D. Using an information system that provides information about an inventory shortage

D. Using an information system that provides information about an inventory shortage

The 10 mega-trends are grouped into 4 major themes. Which of the following is not one of the 4 themes?1 A. Strategy and Performance B. Planning and Execution C. Information and Talent D. Warehousing and Transportation E. All of the above are one of the 4 major themes

D. Warehousing and Transportation

By 2025, experts expect companies to use ______________ and ____________ to enable companies to use advance knowledge to actually "shape" demand based on consumer trends. A. offshoring and unstructured data B. artificial intelligence and warehouse automation C. driverless vehicles and warehouse automation D. artificial intelligence and unstructured data

D. artificial intelligence and unstructured data

By 2025, more companies will stick to their ___________, and many activities will be outsourced to the broader supply chain to leverage the expertise of external organizations. A. highest selling products B. use of robotics C. preferred transportation routes D. core competencies

D. core competencies

The difference between the customer's desired order cycle time and the total supply chain order cycle time is known as: A. order cycle time B. logistics lead time C. customer delivery cycle D. lead time gap

D. lead time gap

If average daily demand for a product is 5 units and average lead time for an order to arrive is 7 days, what is the reorder point (ROP) for the product? A. 21 units B. 12 units C. 7 units D. 5 units E. 35 units

E. 35 units

Supply chain disruptions can be: A. From natural disasters B. From man-made events C. Short in duration D. Both a and b E. All of the above

E. All of the above

When entering a new international market, the following question(s) should be asked to understand cultural differences: A. How are decisions made? B. How are relationships approached C. How is success measured? D. A & B E. All of the above

E. All of the above

Which of the following traits are recruiters seeking when hiring supply chain professionals today? A. Category knowledge B. Analytical and computer skills C. Written and verbal skills D. Ability to forge relationships E. All of the above

E. All of the above

Why might a company consider expanding its supply chain internationally? A. To obtain access to lower-cost suppliers B. To take advantage of a skilled labor base in another country C. To support international expansion of sales D. To fend off competition from an international competitor E. All of the above

E. All of the above

Volknox Company has experienced a disruptive event. Specifically, it faces a shortage of product X. What could NOT be the outcome of this event? A. Lost sales to customers B. Shutdown of manufacturing process C. Very costly impact D. Mild impact E. All of the above could be an outcome

E. All of the above could be an outcome

What are the 4 stages of the Product Life Cycle?

introduction, growth, maturity, decline