business logistics mid term true or false
A reason for making items instead of buying them would include better quality control.
True
When both the demand and lead time of a product are variable, firms must keep a higher safety stock level compared to variations in just demand, to offer the same service level.
True
The universally accepted definition of supply chain management is "the management and integration of the parties involved in producing the end items coveted by consumers."
False
A SRM strategy refers to a situation wherein a supplier's employee is permanently housed in the purchasing department of the buyer's organization.
False
According to the textbook, in the 1950's and 1960's, mass production techniques focused on creating supplier partnerships, improving process design and flexibility, and improving product quality.
False
According to the textbook, third-party logistics providers (3LPs) do not offer assistance with helping products clear customs.
False
In a Total Cost of Ownership system, certification and training of suppliers would be considered post-transaction costs.
False
In a weighted-criteria evaluation system the weights of all the performance dimensions must add up to more than 1.00 and less than 100.
False
Transactional SRM, allows the company to analyze the complete supplier base.
False
Trends in supply chain management include expansion of the supply chain and decreasing supply chain visibility
False
A seven-step approach to supplier development might include identifying critical suppliers not meeting performance requirements.
True
Individual biases could negatively impact the effectiveness of the Sales Force Composite forecasting approach, due to the proximity of the sales personnel to the consumers.
True
It is important for firms to addresses the impact of ethical and sustainable sourcing on other facets of the organization and its trading partners.
True
Procurement credit cards can be used for small purchases including meals, lodging, and travel expenses.
True
The goal of a good purchasing system is to ensure efficient information transitions between the materials users, the purchasing personnel, and the suppliers.
True
It is best for firms to learn through their own experiences the methods and tools that work the best, rather than benchmarking.
False
An MRP system has a subassembly with a lot size of 500 units. In terms of filling future requirements, this would mean that planned order releases for the subassembly would always have to be exactly 500 units.
False
In general, single integrator ERP solutions are better suited to more intricate workplaces.
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
The four categories of inventory are raw materials, intermediate assemblies, work-in-progress and finished goods.
False
The three basic production strategies for addressing the aggregate planning problem are the chase production strategy, the level production strategy, and the aggregate production strategy.
False
The true value of CPFR comes from the sophisticated forecasting algorithms that provide companies with highly accurate forecasts, not from the exchange of forecasting information.
False
When demand and lead time are constant, the reorder point (ROP) is less than the demand during lead time.
False
Blank check purchase orders, Corporate purchasing cards, Petty cash, and Open-end purchase orders are all possible alternatives to dealing with small value purchases such as those for office supplies.
True
CPFR is more likely to succeed if companies educate their employees on the benefits of the process changes and the disadvantages of maintaining the status quo.
True
Cost savings is an advantage of using an e-procurement system.
True
Creating strategic supplier alliances benefits firms by increasing the performance and value of suppliers as well as increasing brand awareness.
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
ERP provides the mechanism for supply chain members to share information so that scarce resources can be fully utilized to meet demand, while minimizing the bullwhip effect and supply chain inventories.
True
Firms assess their sourcing capabilities because the sourcing function is one of the most value-enhancing functions in an organization.
True
Given the following information, the forecast for period two using exponential smoothing and α = 0.3 is 60.5. Period Demand Forecast 1 64 59 2 70
True
Highly valued customers with large purchasing budgets who achieve moderate supply chain management success have been known to lower purchasing and inventory carrying costs, and create better quality products with higher levels of customer service.
True
Legacy systems were designed to perform a very specific operational function.
True
MRO supplies are a type of indirect costs.
True
One of the assumptions of the economic order quantity model (EOQ) is that purchase price must remain constant.
True
Successful supplier relationships involve equal decision-making control.
True
The assembly or production of finished products, producing the right amount of product, and ensuring that finished products meet specific quality, cost, and customer service requirements can all be considered elements of operations.
True
The calculated forecast for May is 46, using the actual demand shown in the table below, and a 3-month weighted moving average with weights 0.1, 0.4, 0.5 (the heaviest weight applied to the most recent period). Nov. 39 Dec.36 Jan. 40 Feb. 38 Mar. 48 Apr. 46
True
The total cost analysis demonstrates how other costs besides the unit cost can affect purchase decisions.
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
