Ch. 11 OM

A lawnmower assembly plant uses a variety of​ nuts, bolts,​ screws, and other fasteners in its operation. Its supplier delivers these items directly to the point of use on the assembly line and ensures that there are always sufficient quantities of fasteners to maintain the production schedule. This is an example of A. single stage control of replenishment. B. ​vendor-managed inventory. C. ​e-procurement. D. postponement.

B

What is a​ long-term purchase commitment to a supplier for items that are to be delivered against​ short-term releases to​ ship? A. postponement B. blanket order C. drop shipping D. advanced shipping notice

B

Which of the following is NOT true about reverse logistics as compared to foward​ logistics? A. Pricing is dependent on many factors. B. Speed is often very important. C. Distribution costs are less directly visible. D. Forecasting is more uncertain.

B

Which of the following mitigation tactics could reduce economic​ risk? A. subcontractors on retainer B. purchasing contracts that address price fluctuations C. multiple transportation modes and warehouses D. franchising and licensing

B

What is transferring a​ firm's activities that have traditionally been internal to external​ suppliers? A. vertical integration B. ​make-or-buy C. keiretsu network D. outsourcing

D

Supply chain managers outsource logistics to meet three​ goals: A. drive down inventory​ investment, lower delivery​ costs, and improve delivery reliability and speed. B. lower delivery​ costs, improve delivery reliability and​ speed, and provide better market response. C. drive down inventory​ investment, lower delivery​ costs, and provide better market response. D. drive down inventory​ investment, improve delivery reliability and​ speed, and provide better market response.

A

Three criteria for designing distribution networks to meet customer expectations​ are: A. rapid​ response, product​ choice, and service. B. low​ cost, rapid response and product choice. C. low​ cost, product choice and service. D. rapid​ response, low​ cost, and service.

A

When determining the optimal number of​ facilities, logistics-related costs do NOT usually include which of the following​ costs? A. purchasing B. facility C. transportation D. inventory

A

Which of the following industries has the highest supply chain cost as a percentage of​ sales? A. petroleum B. restaurants C. metals D. automobile

A

Which of the following is the first stage of supplier​ selection? A. supplier evaluation B. contracting C. negotiations D. supplier development

A

Which of the following statements is NOT​ true? A. A​ closed-loop supply chain is a designed to optimize only reverse flows. B. ​"Closed-loop supply​ chain" is sometimes used as a synonym for​ "reverse logistics." C. A​ closed-loop supply chain prepares for returns prior to product introduction. D. Reverse logistics involves the processes of sending returned products back up the supply chain for​ resale, repair,​ reuse, remanufacture,​ recycling, or disposal.

A

With regard to the​ cost-based price model negotiation​ strategy, which of the following is​ true? A. Prices are based upon supplier costs. B. Prices are based in some way upon market standards agreed to by both supplier and purchaser. C. Prices float based on what the customer is willing to pay. D. Potential suppliers each submit quotations as to​ price, delivery, and so on.

A

The​ do-it-yourselfer plucked a gallon can of base paint from the shelf of the local hardware store and handed it to​ Keith, the cheerful clerk at the paint counter. Their eyes met briefly and the​ do-it-yourselfer silently handed over sample​ 150C-1, Musical​ Mist, to the clerk. It was impractical to keep several gallons of every possible color on the shelves at the hardware​ store, so the paint manufacturer had created clever workaround. The workaround was a​ computer-based system that added predetermined quantities of pigments to a gallon can of base paint depending on the desired​ shade, in this​ case, Musical Mist. The hardware store now needed to stock only the base​ paint, this​ machine, and a small supply of paint pigments in order to create the thousands of colors in its catalog. This scenario is a prime example of A. the bullwhip effect. B. postponement. C. ​vendor-managed inventory. D. drop shipping.

B

Which negotiation strategy bases price on a​ published, auction, or index​ price? A. competitive bidding B. ​market-based price model C. ​supply-based price model D. ​cost-based price model

B

Which of the following statements is NOT true regarding channel​ assembly? A. Channel assembly treats distributors more as manufacturing partners than as distributors. B. Channel assembly sends individual​ components, modules, and finished​ products, to the distributor. C. Channel assembly represents one way to implement postponement. D. Channel assembly postpones final assembly of a product so the distribution channel can assemble it.

B

Which of the following statements is NOT true regarding the bullwhip​ effect? A. Bullwhip fluctuations in the supply chain increase the costs associated with​ inventory, transportation, shipping and receiving. B. The bullwhip effect occurs as order are relayed from​ retails, to​ distributors, to​ wholesalers, to​ manufacturers, with fluctuations decreasing at each step in the sequence. C. Bullwhip fluctuations in the supply chain decrease customer service and profitability. D. Inaccurate information results in distortions and​ fluctuations, causing what is known as the bullwhip effect.

B

Which of the following statements is NOT​ true? A. A supply chain includes​ suppliers; manufacturers​ and/or service​ providers; and​ distributors, wholesalers,​ and/or retailers who deliver the product​ and/or service to the final customer. B. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting. C. Supply chain management describes the coordination of all supply chain​ activities, starting with raw​ materials, and ending with a satisfied customer. D. The objective of supply chain management is to coordinate activities within the supply chain to maximize the supply​ chain's competitive advantage and benefits to the ultimate consumer.

B

Airfreight A. represents about​ 10% of the tonnage shipped in the United States. B. is the oldest means of freight transportation. C. is a​ fast-growing mode of shipping. D. is the best way to transport natural gas.

C

Prior to embarking on supply chain​ design, operations managers must first consider A. how to manage supply chain inventory. B. what kind of distribution network to have. C. ​"make-or-buy" and outsourcing decisions. D. how to select suppliers.

C

The advantage of having few suppliers is to A. take advantage of diseconomies of scale. B. look for​ short-term attributes. C. form a​ long-term relationship. D. pursue low cost.

C

Trucking A. is the least used transportation mode for manufacturing goods. B. is one of the least flexible transportation modes. C. is increasingly using computers to manage its operations. D. does not play a role in multimodal shipping.

C

What is developing the ability to produce goods or services previously purchased or actually buying a supplier or a​ distributor? A. horizontal integration B. virtual companies C. vertical integration D. outsourcing

C

Which of the following could reduce distribution​ risk? A. secure IT systems B. ​cross-country diversification C. careful​ selection, monitoring and effective contracts with penalties D. use multiple suppliers

C

Which of the following statements is NOT​ true? A. An effective supplier management program and an effective distribution management program may make the difference between supply chain success and failure. B. ​Top-notch supply chain performance requires good downstream​ management, just as it does good upstream management. C. Finding the optimal number of facilities represents a critical and static decision. D. Packaging and logistics are important distribution​ decisions, because the manufacturer is usually held responsible for breakages and serviceability.

C

Which of the following statements is true regarding​ cross-sourcing? A. ​Cross-sourcing describes suppliers who become part of a company coalition. B. ​Cross-sourcing develops the ability to produce goods or services previously purchased or actually buying a supplier or distributor. C. ​Cross-sourcing uses one supplier for a component and a second supplier for another​ component, where each supplier acts as a backup for the other. D. ​Cross-sourcing enhances technological skills.

C

Which of the following strategies is part​ collaboration, part purchasing from few​ suppliers, and part vertical​ integration? A. virtual companies B. joint ventures C. keiretsu networks D. horizontal integration

C

A supply chain ends with A. manufacturers. B. distributors. C. suppliers. D. a satisfied customer.

D

The advantage of having many potential suppliers is their willingness to A. participate in JIT. B. provide technical expertise. C. provide innovations. D. offer lower prices in the short term.

D

What is a supply chain designed to optimize both forward and reverse​ flows? A. ​open-loop supply chain B. ​bullwhip-loop supply chain C. ​reverse-loop supply chain D. ​closed-loop supply chain

D

Which of the following is NOT one of the benefits accrued from a centralized purchasing​ function? A. Devote more resources to the supplier selection and negotiation process. B. Maintain professional control over the purchasing process. C. Leverage purchase volume for better pricing. D. Increase the duplication of tasks.

D

Which of the following mitigation tactics is NOT designed to reduce the risk of information loss or​ distortion? A. secure IT systems B. training of supply chain partners on the proper interpretations and use of information C. redundant databases D. alternate sourcing

D

Which of the following statements is NOT generally an implication stemming from an increase in the number of​ facilities? A. quicker response B. increased facility costs C. increased customer satisfaction D. decreased total logistics cost

D

Which organization has developed principles and standards to be used as guidelines for ethical​ behavior? A. Institute for Purchasing Management B. Institute for Procurement Management C. Institute for Vendor Management D. Institute for Supply Management

D