Supply chain management Final Spring 2019

Which of the following is an obstacle to successful process integration? a. Passive integration b. Stockpiling c. Lack of trust d. Transaction costs

Lack of trust

When CRM applications are available 24/7 on smartphones, tablets, and desktops, this is referred to as: a. A high-service application b. Smart CRM c. All-time CRM d. Continuous connectivity

Continuous connectivity

When customer expectations are met or exceeded, the service is deemed to possess low quality.

False

It is considered unethical for a firm to intentionally buy from women-owned businesses.

False

Organizations practicing lean production often increase their inventory levels in order to create a cushion against variability so that they can investigate and eliminate the weaknesses in their systems.

False

Reverse logistics has become an important trend in ethical and sustainable sourcing.

False

The economic order quantity model (EOQ) is the optimal independent demand order quantity that minimizes total annual inventory costs.

True

Toyota initially designed their JIT program on Ford's manufacturing system.

True

Sustainable sourcing policies should include which of the following? a. Use of minority workers b. Fair working conditions c. Use of renewable energy d. Use of child labor

Use of renewable energy

Which of the following is NOT one of the Eight Key Supply Chain Business Processes? a. Order Fulfillment b. Customer Relationship Management c. Returns Management d. Warehouse Management

Warehouse Management

According to the textbook, the top three challenges for CPFR implementation include all of the following EXCEPT: a. Making organizational and procedural changes b. Trust between supply chain partners c. Cost d. Supplier lead times

Supplier lead times

Encouraging or helping a firm's suppliers to perform in a desired fashion can be referred to as: a. Progressive procurement b. Supplier management c. Right-shoring d. Supply chain performance management

Supplier management

An internal or external event that causes a disruption or failure of supply chain operations is an example of a. Bull-whip effect b. Back-shoring c. Supply chain risk d. Six Sigma quality management

Supply chain risk

According to the textbook, the five basic modes of transportation are motor, rail, air, water, and pipeline.

True

As tighter control limits are instituted for the tracking signal, there is a greater probability of finding exceptions that require no action, but it also means catching changes in demand earlier.

True

At a service facility it has been calculated that they can handle the demand per hour approximately 76 percent of the time at a rate of 4 per hour. This means that approximately 24 percent of the time, demand per hour will be greater than four customers, causing queues to develop.

True

Automating procurement activities can lead to significant cost savings as buyers move toward managing processes by exception.

True

Criteria to evaluate a purchasing department's performance should include both quantitative and qualitative assessments.

True

Foreign suppliers located farther away may be able to deliver goods faster than domestic suppliers due to more efficient transportation and logistical systems.

True

In Europe, rail transportation tends to be much more prevalent and reliable than rail transportation in the U.S., because European track, facilities, and equipment are newer and better maintained.

True

Lack of internal or external collaboration will create quality, cost, delivery timing, and other customer service problems that are detrimental to supply chains.

True

One of the assumptions of the economic order quantity model (EOQ) is that purchase price must remain constant.

True

Poor logistics management can bring a supply chain to its knees, regardless of the quality of the products.

True

Procurement credit cards can be used for small purchases including meals, lodging, and travel expenses.

True

Reverse logistics refers to the movement and storage of returned goods.

True

Rewarding suppliers for maintaining high levels of performance is an important step used in maintaining a successful strategic alliance program.

True

Statistical process control uses control charts to monitor the outputs of a process to identify variations due to assignable causes and variations due to common causes.

True

Supply chain analytics can be used along the supply chain to schedule production according to expected supplier deliveries

True

Supply chain management is concerned about how suppliers' products are designed, produced, and transported.

True

The Malcolm Baldrige National Quality Award recognizes firms for their quality achievements but is only given to U.S. firms.

True

To control and enhance the capabilities of companies within a supply chain, well-designed performance measurement systems must be implemented.

True

Two methods for managing supply chain risk include utilizing a supply chain IT system and identifying backup suppliers.

True

Volatile currency exchange rates do not have an impact on location decisions.

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

While a company's Internet presence may be desirable for finding information or conducting product transfers, touching products and talking face-to-face with company representatives remains an integral part of the supplier-customer interface.

True

An important outcome of statistical process control is: a. Firms can take corrective actions before process variabilities get out of control b. Firms can visually monitor process performance c. Firms can minimize total inventory cost d. Both A & B e. None of these

Both A & B

Firms can safeguard customer information by doing which of the following? a. Allow customers to opt-in and out of mailing lists b. Allow customers to access their accounts online to view information collected about themselves c. Both A & B d. None of these

Both A & B

The impact of poor communication and inaccurate forecasts resonates along the supply chain and results in the: a. Bullwhip effect b. Delphi method c. CPFR effect d. Mean deviation

Bullwhip effect

The EOQ equation is derived by setting the annual purchase cost equal to the annual holding cost.

False

The batching of orders is unlikely to increase the likelihood of the bullwhip effect occurring.

False

The legacy MRP system was programmed to coordinate with other functional areas in the firm.

False

The objectives of any CRM initiative should be focused on what the company can reasonably achieve.

False

The optimal capacity utilization for an organization would be 100%.

False

The possibility of events like strikes, assembly line breakdowns, and natural disasters are all reasons a company should favor using a single supplier.

False

Themed restaurants such as the ESPN zone (sports theme), Rainforest Cafe (jungle theme), and Chuck E. Cheese (kids theme) are all examples of Entertainment facilities.

False

Trends in supply chain management include expansion of the supply chain and decreasing supply chain visibility.

False

When a single company that is implementing an ERP system chooses to use one company to provide an operations module, another to provide the sales and marketing application, and yet another company to provide the finance and accounting module, that single company has chosen to utilize the single integrator approach.

False

he 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. Dec. Jan. Feb. Mar. Apr. 39 36 40 38 48 46

False

Intermodal marketing companies (IMCs) are companies that act as intermediaries between intermodal a. Trucking companies b. Railroad companies c. Waste management companies d. Warehouse management companies

Railroad companies

According to the SCM profile Honda ___________ based on a supplier relations index developed by Planning Perspectives. a. Ranked lower in 2015 than 2014 b. Ranked near the bottom in 2015 c. Ranked near the top in 2015 d. Ranked fifth in 2015

Ranked near the top in 2015

Reverse logistics can have a positive impact on the environment through activities such as? a. Data warehousing b. Reneging c. Risk pooling d. Recycling

Recycling

Which of the following is a reason for favoring single sourcing? a. Encourages competition among suppliers b. Spreads the risk of supply interruption c. Reduces variabilities in quality levels d. Reduces information about new processing technologies

Reduces variabilities in quality levels

Substance disposal and recycling are part of which supply chain business process: a. Customer relationship management process b. Returns management c. Customer service management process d. Product development and commercialization process

Returns management

Decisions regarding the types of parts purchased, suppliers used and the manufacturing process employed, should be decided in which phase of the supply chain integration model: a. Review and establish supply chain strategies b. Identify critical supply chain trading partners c. Align supply chain strategies with key supply chain process objectives d. Assess and improve internal integration of key supply chain processes

Review and establish supply chain strategies

Which of the following secures the right of employees to decide whether to join or financially support a union? a. Union shop laws b. Union planning forums c. Ethical union initiatives d. Right-to-work laws

Right-to-work Laws

Streamlining the processes and communications between the buyer and supplier using software applications that enable these processes to be managed more efficiently and effectively can be referred to as: a. CRM b. SRM c. ISO 9000 d. SCSS

SRM

What component of a time series has variations in demand which show peaks and valleys that repeat over a consistent interval such as hours, days, weeks, months, or years? a. Trend Variations b. Cyclical Variations c. Random Variations d. Seasonal Variations

Seasonal Variations

When using a Weighted Criteria Evaluation System to evaluate suppliers, all of the following are true EXCEPT: a. Select the key dimensions of performance based on what is important to the end consumer b. The weights for all dimensions must sum to 1 or 100% c. Evaluate each of the performance measures on a rating between zero and one-hundred d. 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 customer

Which person was a key figure in developing the Toyota Production System and also developed the concept of poka-yoke? a. Deming b. Ohno c. Toyoda d. Shingo

Shingo

Influencing and increasing the capabilities of a firms own employees, as well as those of their trading partners, will help to eliminate which of the following obstacles to process integration? a. Risk Pooling b. Lack of trust c. Shortage Gaming d. Lack of Knowledge

Shortage Gaming

The following time-series approach to forecasting uses historical data to generate a forecast and works well when demand is fairly stable over time: a. Naïve Forecast b. Weighted Moving Average c. Simple Moving Average d. Exponential Smoothing

Simple moving average

The total cost of ownership for Supplier A is $2,670,000. The total cost of ownership for Supplier B is $1,750,000. The total cost of ownership for Supplier C is $2,990,000. Using Total Cost Analysis, it will be more cost-effective to use a. Supplier A b. Supplier B c. Supplier C d. Cannot be determined

Supplier B

An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as: a. Quality Systems Certification b. Supply Management c. Supplier Inspection d. Supplier Certification

Supplier certification

The smoothing constant for exponential smoothing must be? a. Positive b. Negative c. Between 0 and 1 d. Greater than 1

Between 0 and 1

In general, performance measurement systems are mostly identical from company to company.

False

Before supplier relationship management (SRM), buyers typically spent 40% of their time on expediting orders. After SRM implementation buyers spent about: a. 10% of their time on expediting orders b. 20% of their time on expediting orders c. 30% of their time on expediting orders d. None of the these

10% of their time on expediting orders

According to the text, which of the following is considered a current trend in supply chain management? a. Using supply chain analytics b. Increasing supply chain visibility c. Both A and B d. None of these

Both A & B

Pareto Analysis means that 20 percent of the items get about 80 percent of the safety stock.

False

Calculate the defects per million opportunities (DPMO) given the following: Blake, owner of Blakester's T-shirt Shoppe, keeps track of customer complaints. For each T-shirt sold, there are four possible complaints: T-shirt shrinks, poor quality, design wears off, and doesn't fit right. Each week, Blake calculates the rate of T-shirt "defects" per total T-shirts sold, and then uses this information to determine his company's DPMO. During the past week, his company sold 1200 T-shirts. His company received 22 customer shrinkage complaints, 16 poor quality complaints, 12 design wears off complaints, 8 doesn't fit right complaints. Calculate his firm's DPMO. a. 69,600 b. 0.193 c. 5.8 x 10−6 d. 12,083

12,083

A current warehouse system has five warehouses with 4,000 units at each warehouse. The company desires to change to three warehouses to become more centralized and keep the same customer service levels. Determine the average warehouse inventory levels, using the square root rule. (Choose the closest answer.) a. 6,667 b. 11,619 c. 15,492 d. 25,820

15,492

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: a. $5,500 b. $38,590 c. $41,405 d. $25,675

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% Choose the closest answer. a. 49 b. 81 c. 123 d. 202

49

Calculate the inventory container size required given the following: Demand rate = 10 parts per hour, Safety stock required = 16% Number of containers = 14, Time to cycle through entire system = 6 hours a. 2 parts b. 3 parts c. 4 parts d. 5 parts

5 parts

Which of the following would be a good reason to outsource (buy) versus making? a. To utilize existing capacity within a company's own firm b. A firm lacks the technology or expertise to produce an item c. To have more direct control over the design and production of an end item d. No competent supplier presently produces the needed item

A firm lacks the technology or expertise to product an item

Capacity utilization = a. Capacity x Actual customers served per period b. Capacity / Actual customers served per period c. Actual customers served per period x Capacity d. Actual customers served per period / Capacity

Actual customers served per period / Capacity

Not all ERP software is designed to provide the exact same tools, nonetheless, some of the common modules usually included in ERP software packages include: a. Customer relationship management and Human resource management b. Computer assisted drawing and Photo enhancing c. Operating systems and Internet browsing d. All of the above

All of the above

Which of the following are intermodal transportation alternatives? a. Truck trailer-on-flatcar b. Roll-on-roll-off c. Piggyback service d. All of the above

All of the above

Which of the following is an example of how lean programs can help to protect the environment? a. Parts made from recycled materials b. Using rubber from used tires in auto parts c. Batch size reduction to reduce plastics d. All of the above

All of the above

Which of the following is true of today's purchasing staff members? a. They are viewed as strategic internal suppliers of the organization b. They are expected to generate cost savings for the organization c. They are expected to generate service and quality enhancements for the organization d. All the above

All of the above

Which of the following issues is (are) important to consider when trying to determine the location of a firm's facilities? a. The stability in the location considered b. Environmental issues regulated by domestic laws or international trade agreements c. Access to suppliers from the location considered d. All of the above

All of the above

Which of the following would be considered a quality of life factor? a. Wage rates b. Foreign exchange rates c. Community safety d. All of the above

All of the above

Which of the following is a vital element in developing a strong supply chain through the practice of process integration? a. Developing and implementing a strong information technology system that allows for fast and easy information exchanges between supply chain partners b. Partner collaborations on methods to improve processes within the supply chain c. Partnerships, which value information sharing and partner collaborations d. All of the above

All the above

Which of the following is a direct benefit from the adoption of NAFTA? a. A reduction in illegal immigrants crossing the border from Mexico b. An increase in manufacturing job opportunities in the U.S. c. An increase in trade between U.S., Canada, and Mexico d. An increase in trade between U.S. and China

An increase in trade between U.S., Canada, and Mexico

Leading companies practicing sustainable sourcing and seeking to reduce costs would NOT use which of the following strategies? a. Backward integration to purchase suppliers b. Increase resource efficiencies c. Avoid use of noncompliant suppliers d. Rethink transportation and distribution systems

Backward integration to purchase suppliers

The following is an example of the bullwhip effect: a. Barkley's produces a defective product and thus realizes an excessive increase in consumer returns b. Barkley's products are so successful that it adds a new retailer for distribution c. Barkley's incorrectly anticipates consumer demand resulting in stockouts at several popular retailers d. 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

If a company is effectively focusing on its core competencies, its level of outsourcing is likely to decrease.

False

Which of the following statements is FALSE? a. Centralized purchasing is where individual, local purchasing departments, such as at the plant level, make their own purchasing decisions. b. Electronic procurement systems can aid a company in saving both time and money. c. More than 50% of each sales dollar typically goes towards covering supply chain costs. d. If a firm lacks the technology to make a required component they will need to consider buying/outsourcing.

Centralized purchasing is where individual, local purchasing departments, such as at the plant level, make their own purchasing decisions.

Which of the following MRP terms represents the parts demanded by a parent? a. Gross requirement b. Component c. Net requirement d. Scheduled receipt

Component

___________________ are for-profit organizations that contract out or lease a wide range of light manufacturing, warehousing, and distribution services to other companies. a. Public warehouses b. Private warehouses c. Breakbulk warehouses d. Consolidation warehouses

Consolidation warehouses

_______________ carry the majority of the world's water-transported manufactured goods. a. Supertankers b. Containerships c. Barges d. None of the above

Containerships

For integrated supply chains, logistics is considered: a. Not at all important b. Somewhat important c. Important d. Critically important

Critically Important

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: a. Piggy backing b. Risk pooling c. Cross docking d. Customs Brokering

Cross docking

The online retailer Ecatalog.com has decided to send consumers of the new John Grisham book an e-mail with suggestions for books with similar themes and has also offered them a 20% discount if those suggested books were purchased. This type of marketing/promotion is an example of: a. Target marketing b. Segmented selling c. Clickstream selling d. Cross-selling

Cross-selling

Which of the following are required elements of an effective CRM initiative? a. Sending out promotional materials via e-mails and traditional mail to a large random group of a potential customers b. Cross-selling customers after an initial purchase c. Preserving a traditional sales force that communicates with the supply-chain members d. All of these

Cross-selling customers after an initial purchase

Which of the following customer service elements can be classified as an example of posttransaction elements? a. Salesperson politeness b. Customer complaint resolution c. Customer service policies d. The company's choice of organizational structure

Customer complaint resolution

A customer approaches a firm with a question regarding her order status and shipping date; the information the firm provides is an example of which of the eight key supply chain business processes: a. Supply management process b. Demand management process c. Customer service management process d. Order fulfillment process

Customer service management process

Independent demand is the: a. Internal demand for all end-item parts and materials. b. Demand for a firm's end products. c. Forecasted demand for purchased items. d. Absolute demand for all items.

Demand for a firm's end products

Which of the following is NOT important in developing a successful strategic alliance? a. Developing performance metrics b. Developing cross-functional team capabilities externally and within the company c. Developing efficient processes that will remain unchanged for the duration of the partnership d. Open lines of communication that both promote sharing and secure confidentiality

Developing efficient processes that will remain unchanged for the duration of the partnership

Which of the following is considered a disadvantage of utilizing an ERP system? a. ERP systems reduce the bullwhip effect b. ERP systems are very complex and have proven difficult to implement c. ERP systems use a single database and common infrastructure d. Once ERP information is entered it is made available to all users

ERP systems are very complex and have proven difficult to implement

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

As firms seek to improve the products they offer to the market, companies are seeking help from their suppliers in new product design and development through: a. Supplier certification programs b. Manufacturer certification programs c. Early supplier involvement d. Total Cost of Ownership initiatives

Early supplier involvement

All of the following are considerations used in designing service layouts EXCEPT: a. Reduction of time to restock b. Impulse purchasing c. Speed up customer throughput d. Ease of access to parking lot

Ease of access to parking lot

If an item is ordered using its economic order quantity, the annual carrying cost should be: a. slightly less than the annual ordering cost. b. equal to the annual ordering cost. c. twice the annual purchase price. d. the square root of the annual ordering cost. e. none of the above.

Equal to annual ordering cost

ll of the following may influence demand and should be considered when developing a forecast EXCEPT a. New competition b. Supplier quality c. Ergonomic conditions d. Emerging markets

Ergonomic conditions

Which of the following is NOT a step suggested in the Supply Chain Sourcing Strategy Framework? a. Establish corporate ethical and sustainable sourcing policies b. Certify suppliers as ISO 9001 compliant c. Develop a performance measurement system d. Prioritize items based on ethical and sustainability opportunities and ease of implementation.

Establish corporate ethical and sustainable sourcing policies

Promoting diversity by intentionally buying from small firms or ethnic minority businesses is an example of: a. Supply base rationalization b. Ethical sourcing c. Sustainable sourcing d. Supply base sourcing

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: a. Event-based marketing b. Segmented selling c. Personal holiday marketing d. Extreme segmentation marketing

Event-based marketing

The Hormel company awards their Hormel Food Corporation's No. 1 Award to their top supplier. How often do they give this award? a. Every year b. Every 6 months c. Every 5 years d. Every 10 years

Every 5 years

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

A country that imposes high tariffs encourages foreign-based companies to import goods.

False

A lean system is known as a push system

False

According to the text, good queue management consists of managing only what the customer perceives to be as the waiting time.

False

According to the textbook, there are four key supply chain business processes: Purchasing, Manufacturing, Distribution, and Returns.

False

According to the textbook, third-party logistics providers (3LPs) do not offer assistance with helping products clear customs.

False

ERP Implosion is the process of converting a parent item's planned order releases into component gross requirements.

False

Generally speaking, motor carriers are less expensive than rail carriers to haul goods.

False

A customer's lifetime value is calculated by: a. Summing the projected annual profitability of the customer b. Summing the annual sales of the customer and then dividing by the projected lifetime c. The firm's MRP system d. Finding the NPV of a customer's projected lifetime profits for the firm

Finding the NPV of a customer's projected lifetime profits with the firm

According to the text, which of the following is a service strategy characterized by the idea that a service can serve a narrow target market better than a broad market? a. Differentiation strategy b. Demand strategy c. Focus strategy d. Transitional strategy

Focus Strategy

Layout strategies help firms maximize all of the following EXCEPT: a. Service efficiencies b. Four Ms c. Customer service d. Server productivity

Four Ms

Due to the success of NAFTA, the U.S________________. a. Has decided to extend the agreement until 2025 b. Has free trade agreements in 20 countries c. Both A & B d. None of the above

Has free trade agreements in 20 countries

Which of the following is NOT a technique for managing customers' perceived waiting times: a. Grouping customers b. Hiding the wait time c. Keeping customers occupied d. Starting the service quickly

Hiding the wait time

Organizations that primarily compete on speed of delivery, such as FedEx and UPS, utilize which of the following approaches for location determination? a. Sourcing center b. Air and ground c. Hub and spoke d. LTL consolidation

Hub and Spoke

Inaccurate forecasts can result in negative outcomes like: a. High inventory costs and increased profits b. Imbalances in supply and demand c. Material shortages and decreased costs of obsolescence d. Low inventory costs and stockouts

Imbalances in supply and demand

The Quick Response program, developed in the 1980's, was an offshoot of the following supply chain concept: a. Efficient Consumer Response b. Six Sigma c. Just-in-Time d. Kaisen

Just-in-time

According to the text, all of the following are considered key supply chain business processes EXCEPT: a. Manufacturing flow management process b. Knowledge management process c. Supplier relationship management process d. Product development and commercialization

Knowledge management process

Higher inventories, higher costs, longer response times, and lost customers can result from? a. Lack of trust between trading partners b. Lack of supply chain visibility c. Lack of vendor managed inventories d. Reactive initiatives

Lack of supply chain visibility

Customer relationship management, distribution network, transportation management, and service response logistics are all important issues that are most closely related to: a. Purchasing b. Logistics c. Integration d. Manufacturing

Logistics

______________ creates the efficient flow of goods between supply chain partners, allowing profits and competitive advantage to be maximized. a. Operations b. Transportation planning c. Logistics d. Procurement

Logistics

Which of the following layouts is primarily designed to process parts, components, or jobs requiring the same or similar processing steps, saving duplication of equipment and labor: a. Work centers b. Production kanbans c. Work-in-process d. Manufacturing Cells

Manufacturing Cells

According to the SCOR model, which of the following is NOT one of the five supply chain operation process categories? a. Plan b. Market c. Return d. Source

Market

The ___________ planning horizon is shorter than the aggregate production plan's, but must be longer than a firm's production lead time to ensure the end item can be completed within the planning horizon? a. Material requirements plan b. Master production schedule c. Demand time fence d. Capacity Requirements Plan

Master production schedule

One operational method for managing inventory is the implementation of a software system which can be referred to as: a. Material requirements planning (MRP) b. Demand capacity tracking (DCT) c. Inventory sourcing (IS) d. Demand process reengineering (DPR)

Material requirements planning (MRP)

Regional trade agreements assist with which of the following? a. Monitor national trade policies b. Provide technical assistance for developing countries c. Handle trade disputes d. All of the above

Monitor national trade policies

Information technology advances, for example, have made cyber attacks: a. Less common b. More common c. Nearly impossible d. Limited to franchises

More common

In the text, Table 9.1 shows that for-hire logistics expenditures in the U.S., have _____________ in the past thirty-one years. a. Remained the same b. Slowly declined c. More than quadrupled d. Decreased for the first 10 years, then increased

More than quadrupled

Waste in Japan is also referred to as: a. Muda b. Kanban c. Poka-yoke d. Sakichi

Muda

Which of the following trade agreements created the world's largest free trade area, currently with over 450 million people and GDP of more than US$20 trillion? a. Association of Southeast Asian Nations (ASEAN) b. European Union (EU) c. North American Free Trade Agreement (NAFTA) d. Southern Common Market (MERCOSUR)

North American Free Trade Agreement (NAFTA)

When salespeople need to fill end-of-quarter or end-of-year sales quotas they might use ___________, which creates greater use of safety stock causing the bullwhip effect. a. Stockpiling b. Bullwhip ordering c. Order fulfillment d. Order batching

Order batching

Which of the key supply chain business processes refers to meeting customer requirements by synchronizing the firm's marketing, production and distribution plans: a. Customer relationship management process b. Order fulfillment process c. Customer demand organization process d. Supply chain synchronization process

Order fulfillment process

Which of the following is a traditional performance measure? a. Average safety stock levels b. Overall total productivity c. Number of suppliers who are quality certified d. Number of product return per units sold

Overall total productivity

ome businesses refer to sustainability in terms of supporting the three P's. This stands for: a. People, place, price b. Place, price, promotion c. People, planet, profit d. Planet, people, price

People, Planet, Profit

When utilizing performance standards, the difference between the standard and the actual performance is called the: a. Productivity Gap b. Organizational Variance c. Certified Variance d. Performance Variance

Performance Variance

ompanies typically like to design scorecards that fit their business and industry. As a result there are now software applications that can help companies design scorecards that fit their individual needs. These web-based balanced scorecard applications are often referred to as: a. E-Cards b. Executive Barometers c. Performance dashboards d. SCOR Boards

Performance dashboards

Which of the following is TRUE? a. Performance metrics and personal business relationships are both keys to building successful partnerships. b. ISO 75000 is the supplier award given to the highest rated supplier in Japan. c. The key to successful partnerships is developing performance measures with weights greater than 3.50. d. 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

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: a. Material requisition b. Purchase requisition c. Planned order release d. Traveling requisition

Planned order release

The following is a term that refers to error or mistake proofing: a. Kaizen b. Muda c. Kanban d. Poka-yoke

Poka-yoke

Cyclical variations are longer than a year and can be influenced by: a. Events such as natural disasters b. Imbalances in supply and demand c. Political factors d. Population growth

Political factors

ou 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: a. Probable customer churn b. Post-transaction customer service c. Transaction customer service d. Pre-transaction customer service

Post-transaction customer service

Costs associated with investigating alternative suppliers and investigating alternative delivery options can be classified as: a. Pre-transaction costs b. Post-transaction costs c. Transaction costs d. All of these

Pre-transaction costs

The element of a CRM program involved with the use of data-mining software and customer behavior analytics is: a. Segmenting customers b. Predicting customer behaviors c. Customer value determination d. Customer preference determination

Predicting customer behaviors

Which of the following has made external integration more difficult to achieve? a. Problems with internal integration efforts b. Identifying key trading partners c. Lack of software applications to coordinate the effort d. Increased number of franchise operators

Problems with internal integration efforts

Which of the following is TRUE regarding the EOQ figure below? a. Curve J represents the annual ordering cost, and curve L represents the annual holding cost. b. A lot size of G has an annual total cost of about C. c. At lot size H both holding costs and ordering costs exceed the annual total cost. d. The EOQ is at lot size G, and curve K is the annual holding cost curve.

The EOQ is at lot size G, and curve K is the annual holding cost curve.

Which of the following marked the end of the initial push by Congress to deregulate the entire U.S. transportation industry? a. The Granger Laws b. The Transportation Act of 1920 c. The Shipping Act of 1984 d. The Interstate Commerce Act of 2013

The Shipping Act of 1984

se the breakeven model to determine which of the statements below is TRUE according to the information provided in the table relating to two different location considered for a new manufacturing facility. LOCATION ANNUAL FIXED COSTS UNIT VARIABLE COSTS Site A $25,000 $11 Site B $20,000 $19 a. The breakeven point for these two locations is 625 units per year b. The breakeven point for these two locations is 600 units per year c. Site A is the desired location if the production rate is 500 units per year d. Site B is the desired location if the production rate is 800 units per year

The breakeven point for these two locations is 625 units per year

While ERP is a relatively new technology, it has grown rapidly since the early 1990s. Which of the following is the reason that has contributed to its rapid growth? a. The increased use of email during the 1990's b. The trend for companies to eliminate their supply chain partners c. The year 2000 millennium bug d. All of the above

The year 2000 millennium bug

Which of the following is a reason that single sourcing is considered risky/bad? a. There could be supplier interruptions due to political instability b. It could establish close relationships with the supplier c. Larger orders make quantity discounts more likely d. Decreases the item to item quality variability of items purchased

There could be supplier interruptions due to political instability

Which of the following is NOT a reason for supplier recognition programs? a. To help suppliers' reputation in the marketplace b. To select the best suppliers c. To encourage suppliers to be more innovative d. To reward suppliers for excellent performance

To select the best suppliers

Which of the following international intermediaries helps foreign buyers and sellers find each other and then handles all the shipping arrangements and documentation preparation? a. Customs broker b. Foreign freight forwarder c. Trading company d. NVOCC

Trading Company

What type of major cost category is considered in the cost associated with placing and receiving the order? a. Turnover Cost b. Supplier-Development Cost c. Transaction Cost d. Pre-transaction Cost

Transaction cost

Your company is conducting forecasting that revolves around population growth in large cities. This type of forecasting can be referred to as what component of a time series? a. Cyclical Variations b. Trend Variations c. Seasonal Variations d. Random Variations

Trend Variations

Which of the following are among the MOST important elements of the lean production philosophy? a. Quality inspections and a standardized product line b. Fully automated assembly lines and a large supplier base c. Large inventories and quality inspections d. Waste reduction and continuous improvement

Waste reduction and continuous improvement

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? a. Air Carriers b. Rail Carriers c. Water Carriers d. Motor Carriers

Water Carriers

Supply relationship management personnel routinely communicate with: a. Production personnel to obtain feedback on supplier and purchased item performance b. Marketing personnel for customer feedback c. Suppliers for new product development and performance feedback

d. All of the above

What is considered an acceptable range for a tracking signal? a. ±1 b. ±2 c. ±3 d. ±10

±3