OPMT 303 Chap 16 Final

8. Which of the following is NOT true of vertical integration? A. Leads to greater flexibility to changing technology. B. Can result in a loss of economies of scale. C. Helps achieve control of the supply chain. D. Reap the profits of the supplier or distributor when there is an attractive return from the investment.

A. Leads to greater flexibility to changing technology.

37. Which of the following is NOT true concerning lean systems and supply chain performance? A. Setup time reduction has minimal impact on the overall supply chain. B. Once lot sizes are reduced, inventory levels in the supply chain are also reduced. C. The presence of lean systems indicates stronger supply chain performance. D. Lean thinking has added to supply chain risk in some cases.

A. Setup time reduction has minimal impact on the overall supply chain.

29. Which of the following is considered a strategic move to increase supply chain resilience? A. Shift some emphasis from efficiency to business continuity. B. Maintain higher inventory levels for critical components. C. Identify alternate suppliers with different operating conditions. D. Create backup of information systems.

A. Shift some emphasis from efficiency to business continuity.

3. The five measures of supply chain performance are A. cost, quality, flexibility, delivery, and time. B. cost, quality, time, delivery, and reliability. C. inventory, quality, time, delivery, and flexibility. D. inventory, cost, quality, time, and delivery.

A. cost, quality, flexibility, delivery, and time.

33. The "triple bottom line" of supply chain performance refers to A. environmental, social, and financial performance. B. time to recover (TR), time to match supply (TS), and performance impact (PI). C. the results of air, water, and energy conservation efforts. D. none of the above.

A. environmental, social, and financial performance.

24. Commonly employed forms of supply chain structural improvement include all of the following EXCEPT A. longer-term contracts. B. forward and backward integration. C. major process simplification. D. major product simplification.

A. longer-term contracts.

16. The flow of materials from upstream nodes into a firm is called A. physical supply. B. physical distribution. C. demand management. D. none of the above.

A. physical supply.

30. Which of the following statements concerning supply chain risk is true? A. Most companies have a clear understanding of how resilient their supply chains are to failure. B. Both the chances of disruption occurrence and magnitude of loss must be considered. C. Focusing attention on the 20% of suppliers that incur 80% of the cost is a recommended approach. D. All of the above are true.

B. Both the chances of disruption occurrence and magnitude of loss must be considered.

12. Which of the following is NOT a form of structural change of the supply chain? A. Forward and backward integration. B. Creating cross-functional teams. C. Major process simplification. D. Outsourcing logistics to a third party.

B. Creating cross-functional teams.

19. The efficient consumer response (ECR) movement was formed as a partnership among retailers, wholesalers, and producers in what industry? A. Garment industry. B. Grocery industry. C. Automotive industry. D. Stationery industry.

B. Grocery industry.

13. Which of the following is a way to improve the supply chain system? A. Forward and backward integration. B. Lean systems. C. Major product redesign. D. Outsourcing logistics to a third party.

B. Lean systems.

14. What two fundamental processes in all supply chains are most affected by the Internet? A. Electronic interchange and order placement. B. Order fulfillment and order placement. C. B2B exchanges and order fulfillment. D. None of the above.

B. Order fulfillment and order placement.

31. To reduce supply chain risk, a company should A. concentrate its supply chain in the same geographic area. B. buy the same critical item from two or more suppliers. C. reduce the amount of inventory held internally or by suppliers. D. do all of the above.

B. buy the same critical item from two or more suppliers.

35. When an automobile manufacturer purchases a firm that produces wiring harnesses, this is an example of A. major process redesign. B. forward integration. C. backward integration. D. supply chain system change.

B. forward integration.

26. The level of supply chain resilience is determined by the ability to A. prepare, detect, and mitigate disruptions. B. plan, detect, and act on disruptions. C. diagnose, act, and stop disruptions. D. plan, see, and secure disruptions.

B. plan, detect, and act on disruptions.

25. Commonly employed forms of supply chain system improvement include all of the following EXCEPT A. partnerships with customers. B. reliance on fewer suppliers. C. setup time reduction in the manufacturing plant. D. cross-functional teams.

B. reliance on fewer suppliers.

7. Which of the following is a form of supply chain system change? A. Process simplification. B. Product redesign. C. Changes in information systems. D. Forward integration.

C. Changes in information systems.

22. Which of the following supply chain improvements would be done first? A. Implementing cross-functional teams. B. Making changes to information systems. C. Conducting a major product redesign. D. Implementing a lean system.

C. Conducting a major product redesign.

4. The average cash-to-cash cycle is defined as A. Days in inventory + days in account receivable + days in accounts payable. B. Days in inventory - days in account receivable + days in accounts payable. C. Days in inventory + days in account receivable - days in accounts payable. D. Days in inventory - days in account receivable - days in accounts payable.

C. Days in inventory + days in account receivable - days in accounts payable.

11. Which of the following is NOT a specific measure of supply chain performance? A. Quality. B. Time. C. Innovation. D. Delivery.

C. Innovation.

6. Which of the following is NOT a characteristic of changes in supply chain structure? A. Are long-range in nature and require considerable capital. B. Include changes in capacity, facilities, process technology, and vertical integration. C. Lead to changes in information systems. D. Are related to bricks and mortar.

C. Lead to changes in information systems.

27. Which of the following is included in the supply chain risk mitigation framework? A. Postrecovery legal action. B. Efficient government assistance. C. Postdisruption recovery. D. All of the above are included.

C. Postdisruption recovery.

28. Which of the following increases the resilience of supply chains in the face of a disruption? A. Reducing inventory levels. B. Reducing the number of suppliers. C. Reducing disruption detection time. D. All of the above.

C. Reducing disruption detection time.

9. Which of the following is NOT true about supply chain dynamics? A. The supply chain is a highly interactive system. B. There is an accelerator effect in the supply chain due to replenishment lead times. C. The best way to improve the supply chain is to increase the total replenishment time and to feed back actual demand information to all levels. D. All of the above statements are true.

C. The best way to improve the supply chain is to increase the total replenishment time and to feed back actual demand information to all levels.

2. Which of the following statements is NOT true regarding supply chain operations? A. All elements of the supply chain are interconnected and dependent on each other. B. Demand changes by the end user can create a bullwhip effect in the supply chain. C. With perfect information at all levels of the supply chain, there will not be a bullwhip effect. D. Time lags in the supply chain create fluctuations in orders and inventories.

C. With perfect information at all levels of the supply chain, there will not be a bullwhip effect.

1. The design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer is called A. demand management. B. distribution channel management. C. supply chain management. D. logistics management.

C. supply chain management.

23. Assume a company has $700,000 worth of inventory and averages $10,000 per day in sales. Also assume it takes 30 days for the average customer to pay off its invoice to this company and it takes 120 days for the company to pay for the materials supplied by its suppliers. What is the company's average cash-to-cash cycle time? A. 20 days. B. 40 days. C. -10 days. D. -20 days.

D. -20 days.

17. Which of the following does the supply chain operations reference (SCOR) model NOT include? A. Make. B. Deliver. C. Return. D. All of the above are included.

D. All of the above are included.

32. Which of the following is true regarding supply chain sustainability? A. It is as important to meet today's needs as the needs of future generations. B. It includes providing safe working conditions for employees. C. It includes financial responsibility to stakeholders. D. All of the above.

D. All of the above.

36. Which of the following statements is true regarding the supply chain dynamics? A. In a highly interactive system, decisions in each part of the supply chain affect the other parts. B. The idea of safe harbor causes increased orders and inventory magnification. C. "Inventory panic" is when managers reduce inventories that are perceived to be too high. D. All of the above.

D. All of the above.

10. __________ is a partnership of retailers, wholesalers, and manufacturers aimed at managing both demand and the supply chain. A. Effective consumer response B. Effective customer reaction C. Effective consumer reply D. Efficient consumer response

D. Efficient consumer response

18. Which of the following is NOT one of the distinct processes described in the SCOR model? A. Source. B. Plan. C. Make. D. Recycle.

D. Recycle.

34. Supply chain sustainability is accomplished primarily through A. innovation in products. B. innovation in processes. C. selection of suppliers who help pursue the triple bottom line. D. all of the above.

D. all of the above.

5. Backward or upstream supply chain flows include A. information. B. monetary payments. C. materials. D. all of the above.

D. all of the above.

20. The efficient consumer response (ECR) movement was formed to A. reduce the separation of manufacturer and retailer. B. make supply chains more responsive to changes in consumer demand. C. combat the bullwhip effect. D. do all of the above.

D. do all of the above.

21. Specific measures of supply chain performance include all of the following EXCEPT A. unit cost. B. volume flexibility. C. on-time delivery. D. supplier turnover.

D. supplier turnover.

15. Order placement via the Internet does NOT include A. increasing the accuracy of the order. B. faster order entry. C. manufacturing and shipment status. D. use of an ERP system to schedule production.

D. use of an ERP system to schedule production.