Chapter 5 Quiz
What could be a disadvantageous cost of outsourcing distribution? Additional shipping costs Maintaining inventory Truck maintenance Buyouts for the current employees in your distribution department
Buyouts for the current employees in your distribution department
Which of these is NOT an area that would affect your supply chain? Transportation Procurement Accounting Distribution
Accounting
What is the progression of reverse logistics? Customer to store to another customer Store to manufacturer to customer Customer to store to manufacturer Store to customer to manufacturer
Customer to store to manufacturer
When goods are 'distributed,' to whom are they taken? Manufacturing plant Suppliers The distribution company Customers
Customers
Which of the following product tags show a product being sold in the US made by a company with a global supply chain? Made in China Sourced from green renewable materialsAll-American made Made in the USA Materials from BelizeMade in Ecuador
Materials from BelizeMade in Ecuador
What is procurement? Running the day-to-day aspects of a company Working with a team to ensure that the best product is being produced by the company Proposals to do work at a certain amount The practice of acquiring what is necessary to do business
The practice of acquiring what is necessary to do business
Which of these is an example of a quality issue? One of your employees falls over a supply of paper that was left outside the office door. You miss an important call because you are on hold with your supplier The supplier is late with your monthly supply of kelp. The printer for your stationery company sends in a batch of wedding invitations that are all smudged
The printer for your stationery company sends in a batch of wedding invitations that are all smudged.
Where does the returned good in the reverse logistic chain go to? The factory The customer The quality assurance center The vendor's distribution center
The quality assurance center
Which of the following communication challenges does a global supply chain business need to be concerned with?A: Language differences B: Cultural differences C: Food differences A, B, and C A and B B and C A
A and B
What type of sales transaction involves a seller offering to sell a good or service to the highest bidder? A UCC auction None of the answers are correct. A contract sale A forward auction A reverse auction
A forward auction
Which of these procurement issues may affect a service company more? A strike of welders A strike of textile workers A lack of paper suppliers A shortage of lumber
A lack of paper suppliers
What is a global supply chain? A network that moves supplies from the distributor in one country to a business in another country Ordering supplies from the other side of your country A network that moves supplies from the distributor in one state to a business in another state Ordering supplies from different states
A network that moves supplies from the distributor in one country to a business in another country
Eric is making some renovations to his family's estate. His main contractor, Jeff, has decided to use several subcontractors to paint the house. Which of the following is a likely process of selection of subcontractors? A reverse auction A forward auction A brokered auction An open auction
A reverse auction
Which of the following was MOST likely produced by a global supply chain? A computer produced by a large IT company in Japan which only sells its products on a domestic basis. A company from North Carolina which specializes in making replicas of small to medium pieces of art. In some special cases, it will also prepare ornate carvings and some specific furniture. An art store from Dallas which prepares all forms of painting, portraits and various photographs. A manufacturing company from Ohio which imports some resources from Italy and produces its furniture in a company in India.
A manufacturing company from Ohio which imports some resources from Italy and produces its furniture in a company in India.
Which of the following would benefit MOST from the use of a spreadsheet in warehouse management? A jeweler who has recently opened his shop. An IT store which sells only 2 luxurious products. An exclusive golf club which only offers a few services. A small retail company which provides over 1,500 products.
A small retail company which provides over 1,500 products.
What types of regulations does a business need to consider when shipping globally?A: Taxes B: Import and export fees C: Cargo insurance A A and B A, B, and C B and C
A, B, and C
Which of the following is an example of the increased paperwork that a business has to deal with in a global supply chain? A: Letters of credit B: Bills of lading C: Air waybills A A, B, and C B and C A and B
A, B, and C
Which of the following is an advantage of using a warehouse management system? The ability to find an item on a specific pallet The ability to track items through the system so as to reduce future inefficiencies All answers are correct. The ability to confirm if something is in inventory
All answers are correct.
Robert works as a technician in the logistics department of a large retail company. His main task is preparing contracts for his department. In which of the following areas does Robert have more work as a result of the global supply chain? Invoices Letters of shipping Bills of lading All of the answers are correct.
All of the answers are correct.
What best categorizes air transit? Able to reach most places Expensive Fast All of these
All of these
What can happen when there is a lack of communication between a business and its vendors in a vendor-managed inventory system? The vendor is not able to stock for an unexpected rise in sales because the vendor didn't know about it. The business runs out of items during a sales promotion because it didn't let the vendors know about it so they could prepare. Due to a lack of communication between the business and its vendors, the store shelves are empty. All of these answers are correct. The business is not able to get its usual orders in two business days because the vendor's delivery times changed to one week due to an unexpected rise in orders for the vendor. The result is that the business has an empty shelf for several days
All of these answers are correct.
Which of these is NOT used by multi-modal transportation? Sea Train All of these are used by multi-modal transportaion. Truck
All of these are used by multi-modal transportaion.
Which of the following would benefit MOST from using air shipments? A retail company which needs to move large sofas across the country. An IT company which needs to move around its raw materials. A company with a friendly environmental policy which needs to get a lot of goods over 3,000 miles away in the next 45 days. An art studio which specializes in paintings which will melt in only 30 days, so it requires swift delivery.
An art studio which specializes in paintings which will melt in only 30 days, so it requires swift delivery.
Why are advances in information technology a driving force behind globalization? Because it makes it faster for companies to communicate with employees, partners and suppliers. Because it allows companies to be able to engage in joint venture without high taxes. Because it makes companies reconsider outsourcing as a key form of decreasing costs. Because it encourages cooperation between various companies and forming of trusts.
Because it makes it faster for companies to communicate with employees, partners and suppliers.
Ted has a large manufacturing company which distributes products all over the world. He has chosen to outsource his distribution to another company. Why would Ted choose to do so? Because they're able to place his goods even closer to frequent customers. Because it's a far less reliable, but cheaper system of delivery. Because they are then responsible for the entire production process, as well as delivering the product to the end user. Because they can be relied upon to market the goods.
Because they're able to place his goods even closer to frequent customers.
Why are open lines of communication important to vendor-managed inventory? Because it helps rationalize production costs, thus increasing the revenue of the company. Because vendors need to know what items are selling and in what quantity. Because it helps vendors increase the quality of their products based on customer input. Because it helps vendors directly supply all of the products directly to the customers.
Because vendors need to know what items are selling and in what quantity.
What relatively new technological business model has permitted more buyers and sellers to engage in reverse auctions? E-commerce E-tailing Procurement services None of the answers are correct. Social media
E-commerce
Which of these things is NOT an important factor of procurement? Handling human resource issues Making sure suppliers are paid on time Getting things for a fair price Making sure the firm is up-to-date technology wise
Handling human resource issues
Tom owns a large marketing company. One of his departments has outdated computers and he wants to replace them with new ones. What would be the BEST way to do so? Go to a firm and provide them with the specifications of what he needs. Ask someone to go to the first store and just buy the most expensive computer available. Send a qualified intern to go to the nearby store and select the models that he believes are both cost-efficient and worth the price. He should seek out a bid from IT companies that could produce such computers.
He should seek out a bid from IT companies that could produce such computers.
Paul is thinking of outsourcing part of the production of his IT company overseas. Which of the following is NOT a problem he will likely encounter? Higher production costs due to expensive labor. Integrity and availability of information. Confidentiality of information. Ensuring quality and consistency.
Higher production costs due to expensive labor.
What is distribution outsourcing? Combining long-distance and short-distance distribution services Expanding a company's services to include transportation and distribution Having regional warehouses where distribution trucks can be loaded and unloaded Hiring a company that specializes in distribution to handle it for your company's needs
Hiring a company that specializes in distribution to handle it for your company's needs
Tina is a CEO of a large manufacturing company that she wants to move overseas. The culture there is very different and Tina knows that she has to prepare for the meetings there. Which of the following would be a good solution to one of the first obstacles she is going to encounter? Hiring a tax advisor Hiring a translator Lobbying with the government of the country Hiring an expert on cultural matters
Hiring a translator
Thomas has a manufacturing firm, and is trying to determine which supplier he should use to provide him with the resources for making the products. Which of the following should be the priority for Tom? How fast the shipment can be made. How reliable the supplier is. How expensive the supplier is. What is the quality of the shipment
How reliable the supplier is.
Which of the following suppliers should you NOT select? If a supplier has both good quality and reliability, but his prices are rather high. If a supplier is very reliable, his deliveries are always on time and his prices are decent. If a supplier is completely unreliable, but he has the lowest prices on the market. If a supplier is excellent and has more than the standard factors, he has something which you think of as the X-Factor.
If a supplier is completely unreliable, but he has the lowest prices on the market.
Jim bids $24,000 on a car. Janet bids $16,000 for the same item, while Timothy bids $23,000. Who would have a winning bid in a forward and reverse auction? In both of them Jim. In the forward auction, it would be Jim, while in the reverse it is Timothy. In the forward auction, it would be Jim, while in the reverse it is Janet. In the forward auction, it would be Janet, while in the reverse it would be Jim.
In the forward auction, it would be Jim, while in the reverse it is Janet.
What is the main benefit of multi-modal transport? It only requires one form of transport in order to be successful. It is by far the fastest method of transportation. It can easily be loaded into several forms of transportation without repackaging. It is the least expensive form of transportation, but it's also the slowest.
It can easily be loaded into several forms of transportation without repackaging.
Why is procurement important? It makes sure companies are able to do their work with a supply of raw materials and other tools. Procurement is not important to business. It keeps insurance premiums for companies low. It runs the entire company day-to-day
It makes sure companies are able to do their work with a supply of raw materials and other tools.
Rachel owns a large manufacturing company and she is considering outsourcing her distribution to a large distribution company. How may that impact her costs? It will increase them significantly, but it will increase her efficiency. It may actually decrease them, because the large distribution companies can leverage their size and strength for good deals. It will decrease them, as most of the distribution companies offer very cheap deals for the first 5 years. It may increase the costs, but it decreases her company's legal liability, as the distributor is now in charge of delivering the product.
It may actually decrease them, because the large distribution companies can leverage their size and strength for good deals.
Rachel wants to buy an iPhone from a local IT store. Which of the following benefits will she get as a customer due to warehouse management? It will provide her with a product of higher quality. It will increase the chance of the store having it in stock. It will decrease the price of the product. It will follow-up with her to make sure she is satisfied with the product
It will increase the chance of the store having it in stock.
Kassy is an owner of a popular retail store which sells multiple products from several different vendors. Rob is an owner of a small pizza place which gets all of its ingredients from one place. Tom is an owner of a large IT store which only has one foreign supplier. Which of them would benefit MOST from a vendor-managed inventory system? Rob Kassy Kassy and Tom Tom
Kassy
Which of these problems deal with distribution? None of your customers have come to pick up their scuba equipment yet, and there is no space in your warehouse. Your flour supplier has run out of the particular flour you like for cupcakes. There is a huge hail storm headed toward the open lot you store a great deal of your car inventory for your dealership. There is a massive pileup on the only interstate within 100 miles of your biggest warehouse
None of your customers have come to pick up their scuba equipment yet, and there is no space in your warehouse.
What is the basic difference between outsourcing and insourcing? Outsourcing means increasing jobs within a company, while insourcing means reducing jobs within a company Outsourcing means jobs are increasing globally, while insourcing means jobs are increasing at home. Outsourcing means using information technology, while insourcing means not using information technology. Outsourcing means moving jobs out of a company, while insourcing means moving jobs into the company
Outsourcing means moving jobs out of a company, while insourcing means moving jobs into the company
What are the key components of procurement management? Paying the suppliers, reviewing contracts with suppliers and making sure that the company has up-to-date technology. Testing the quality of the product, producing it and distributing it. Communicating with the general publish, framing a narrative and developing an efficient marketing mix. Producing the good, transporting it to a store nearby and making sure that the customer is satisfied with the product.
Paying the suppliers, reviewing contracts with suppliers and making sure that the company has up-to-date technology.
Which warehouse management system would a jeweler most likely use? An RF-chip enabled system Pen and paper A database system that shows the location of an item in a warehouse Any of these are acceptable choices
Pen and paper
Who does the bidding in a reverse auction? None of the answers are correct. Potential sellers Potential buyers Brokers Businesses
Potential sellers
Rachel is a CEO of a small startup and she is frustrated because they have inventory problem again. The main cause of these problems is that customers often take weeks before coming by to pick up their product. Which of the following BEST describes this case? Problems regarding logistics Problems regarding procurement Problems regarding transportation Problems regarding distribution
Problems regarding distribution
Jane has a firm which requires a reliable supplier of wax to mass produce her line of candles. She needs to make sure that she is provided with the tools required in an economic manner. Which of the following BEST illustrates that concept? Procurement Globalization Supply An auction
Procurement
Samantha owns a line of shops which sell luxurious cakes and desserts. Most of her ingredients come from Brazil, but a recent increase in tariffs has forced her to think about her supplying options. She is thinking about whether or not to pay for the higher new price or find a new supplier. What does this impact MOST? Logistics Procurement Production Quality
Procurement
When it comes to procurement, what is a bid? Running the day-to-day aspects of a company Working with a team to ensure that the best product is being produced by the company The practice of acquiring what is necessary to do business Proposals to do work at a certain amount
Proposals to do work at a certain amount
Jennifer owns a company which creates large and very heavy pieces of artwork that she sells everywhere around the U.S. Most of her work is made from various forms of metal, and she sometimes has to send quite a large number of it. Jennifer requires to move her material around in a way which isn't damaging to the environment. Which of the following forms of transit BEST suits her purpose? Plane Rail Truck Multi-model
Rail
Which of these is particularly environmentally friendly? Railroads Sea Air Trucks
Railroads
Which of these is most likely to cause a great deal of stress on the reverse logistics system? Refurbishment Recall Return Scrapping
Recall
Which of these results in the highest recuperated profit for a firm with a returned good? A recall Refurbishment Trashing it Scrapping for parts
Refurbishment
What type of sales transaction involves sellers competitively bidding on providing a good or service to a buyer? Buyer's auction Reverse auction There is no such type of transaction. e-auction Forward auction
Reverse auction
Which of these is NOT a job for procurement? Paying the tank suppliers to a helium company Running a non-profit company that provides jobs for veterans Negotiating the cost of lavender scent for a stationery company Making sure the delivered foods are fresh for a restaurant
Running a non-profit company that provides jobs for veterans
Why should companies responsibly recall goods when appropriate? Safety concerns It will always be viewed as fraud. They will gain massive profits in the future. Companies should only recall goods when mandated by law
Safety concerns
What is the oldest form of transportation still used today? Sea Air Train Truck
Sea
Which of the following is a disadvantage of outsourcing? Increased competitive advantage Cost savings Increased flexibility Security of information
Security of information
Which of these is NOT commonplace in warehouse management systems? RF chips Speakers to help echo-locate pallets Bar codes Spreadsheets
Speakers to help echo-locate pallets
What analogy best describes a reverse logistics system? Walking across the stream Swimming upstream Swimming downstream Blocking the stream
Swimming upstream
In regard to globalization, which of the following statements about the advances in information technology is TRUE? Technology allows companies to communicate more easily with people worldwide and for innovations to spread Technology allows companies to keep jobs on their home soil Technology has impacted import/export laws Technology allows companies to insource, thus expanding their businesses
Technology allows companies to communicate more easily with people worldwide and for innovations to spread
What is distribution? The act of passing out flyers advertising your product The act of buying television space for your commercials The act of getting your products to your customers There is no such thing as distribution
The act of getting your products to your customers
Which of the following BEST defines reverse logistics? The administration of business practices to create the highest level of efficiency possible within an organization. The flow of sold goods back to the company in the opposite direction of movement of the supply chain. The flow of revenue which is a direct result of the goods sold by the company. The monitoring of inventory available comparable to the number of goods sold.
The flow of sold goods back to the company in the opposite direction of movement of the supply chain.
Who typically wins a reverse auction? The mean bidder The lowest bidder The median bidder None of the answers are correct. The highest bidder
The lowest bidder
Which of the following statements about warehouse management systems is true? The type of warehouse management system a company uses is often based on its size. The type of warehouse management system a company uses is often based on the type of product the company sells. The type of warehouse management system a company uses is often based on the company's location. All companies use the same type of warehouse management system
The type of warehouse management system a company uses is often based on its size.
How does the vendor benefit in a vendor-managed inventory system? The vendor gains a business for the long term instead of just one sale. The vendor makes more sales. None of these answers are correct. The vendor is able to grow its sales and its business. The vendor gets to do more work
The vendor gains a business for the long term instead of just one sale.
What is an example of a reliability problem with a supplier? Their company fliers are all wrinkled. Their IT tech is over 2 hours late coming to fix your computer. You have heard rumors about the company that makes your boss nervous. Their parking spaces are narrow
Their IT tech is over 2 hours late coming to fix your computer.
Which of these problems deal with transportation? None of your customers want bacon cheeseburgers today, and you have to use the bacon by today. There is a huge hail storm headed toward the open lot you store a great deal of your car inventory for your dealership. There is a massive pileup on the only interstate within 100 miles of your biggest warehouse. Your flour supplier has run out of the particular flour you like for cupcakes
There is a massive pileup on the only interstate within 100 miles of your biggest warehouse.
What else could a distribution company do for your business, besides handle the distribution of goods? Distribution companies offer no additional services or advantages besides distribution. They could wrap your products and pack them for customers. They could negotiate better prices for your company with the shipping companies. They could find office assistants for the distribution side of the business
They could negotiate better prices for your company with the shipping companies.
Which of the following claims is correct regarding reverse auctions? They are legal, but they violate market principles and are only held in conditions where there is no dominant force on the market. They put the buyer firmly in the driver's seat by forcing sellers to directly compete with each other, and a seller may give up if he decides that the price is too low. They put the seller in complete control, as he can determine what the minimum cost of the item will be, as well as it forcing the seller to devote a lot of time to the auction process. They allow a direct line of communication and access between the buyer and the seller, making it more like a face-to-face exchange.
They put the buyer firmly in the driver's seat by forcing sellers to directly compete with each other, and a seller may give up if he decides that the price is too low.
Which of the following is NOT a reason why companies downsize? To increase efficiency To reorganize jobs To increase morale To cut costs
To increase morale
What is the point of warehouse management systems? To keep track of goods in transit To keep track of all goods To keep track of what is on the sales floor To keep track of what is in inventory
To keep track of what is in inventory
When your company outsources distribution, where do they need to send their product? To the distribution center of the company they hired To the foreign customers first, focusing on domestic customers last To all the customers that have ordered goods Only to the customers that have requested personal service
To the distribution center of the company they hired
Which is most capable of reaching any place? Sea Trains Air Trucks
Trucks
What are the three main components of choosing a supplier? Value, quality, and popularity Quality, x-factor, and value Value, quality, and reliability Image, value, and reliability
Value, quality, and reliability
Which of these is an example of a value issue? You can get the exact same flyers Company A is offering from Company B, just at a 30% lower cost. Your office Internet is down and no work can be done. The office letterhead is not printed on a good weighted paper. The sales rep from your paper supply company is late again
You can get the exact same flyers Company A is offering from Company B, just at a 30% lower cost.
Which of these answers could be an 'x-factor'? Your brother-in-law is the CEO of Greg's Grocery, so you order the bottled water for your firm from them. The cost of Emily's Eels and Shrimp's calamari is 45% cheaper than the same calamari from Freddie's Fish Shack. The car parts from Alex's Automotive seems to be better made and last longer than those from Dan's Driving Parts. You get supplies from Becky's Bakery Bonanza faster than you do from Carl's Cake Supplies
Your brother-in-law is the CEO of Greg's Grocery, so you order the bottled water for your firm from them.
What things do businesses and vendors need to communicate about in a vendor-managed inventory system? sales promotion longer delivery times larger than usual number of orders all of these unexpected spike in sales
all of these
Who benefits from a vendor-managed inventory system? the business the vendor nobody both the business and the vendor the CEO
both the business and the vendor
Companies move jobs to other countries _____. due to the availability of cheap foreign labor and fewer regulations because other countries have better benefits for workers because other countries have stricter safety laws due to the environmental protections in other countries
due to the availability of cheap foreign labor and fewer regulations
Improved consistency and accuracy is usually a result of _____. insourcing outsourcing downsizing marketing
insourcing
Many companies are aware of the fact that customers are not interested in purchasing returned goods. As a result, they often _____ their products. recall redesign refurbish donate
refurbish
Who manages the inventory in a vendor-managed inventory system? the vendors the business the management the consumer the stockers
the vendors
