GB320 Exam 2 Ole Miss
What are the ethical dilemmas that companies face when making location decisions?
Choose between doing what is right and doing what is good for business.
What does John state is important for managing quality in the supply chain?
Suppliers that share the same ideals as the business owners when it comes to quality.
The order fulfillment process is more complicated for items that are made-to-order than made-to-stock.
True
The total cost of ownership of a firm's supplies includes both direct and indirect costs associated with purchasing, transporting, handling, inspecting, storing and insuring the products, and then disposing of them.
True -When determining its supply-related costs, a fi rm needs to look at the total cost of ownership (TCO) of the supplies—not just their purchase price. The total cost of ownership includes the overall costs (both direct and indirect) associated with purchasing, transporting, handling, inspecting, storing, and insuring the products, and then disposing of them.
Which of the following is a sustainable transportation strategy?
Use rail for long distance and trucks for short distance.
Which of the following is a tool for process analysis and redesign?
VSM
Firms in the semiconductor industry such as Intel tend to have what type of regional facility configuration?
a few high-capacity facilities
The ability to adjust the point of postponement in a global supply chain by employing techniques of all manufacturing process is a hallmark of ______ manufacturing.
adaptive
Which of the following is a way in which the location of a health care facility can affect sustainability?
enhance the physical, social, and economic health of its surrounding community
Tax incentives and right-to-work laws offered in cities such as North Charleston, South Carolina, are examples of ______ factors that affect facility location decisions.
environmental
A perfect location can always be found as a result of location analysis.
false
Oil refineries can benefit from using a ______ process.
fixed automation
Target needs to perform demand ______ on expected sales of Barbie dolls for Thanksgiving so that it can coordinate shipments of specific quantities of the dolls at specific times to various stores.
forecasting
Some customers are more valuable than others if they ______ the company.
generate more revenue for
Which of the following location tools allows small companies such as Utility Risk Management to use physical environment and demographic data for location analysis?
geographic information system
In an assemble-to-order process supply chain, inventory is ______ and occurs at the ______ of the supply chain.
higher; end
According to John Wheir at the Beacon Coffee Company, what are the top three qualities he is looking for in suppliers?
honesty, quality, communication
Effective demand management is important for a company's ______ areas because demand determines how many employees are hired or let go.
human resource
Most small companies handle the order fulfillment process ______.
in- house
The transportation of raw materials from suppliers to manufacturers is called the ______ movement.
inbound
Packaging ______ are caused by using packaging materials that are not ______.
inefficiencies; reused
Customers drive away without going into a restaurant because they cannot find parking. The restaurant faces the risk of ______ capacity when they fail to accurately predict and manage demand.
insufficient
Reliable customer service consists of all of the following except ______.
order cycle time reduction
When your order arrived, two of the five books you ordered from Amazon were missing. In this case, Amazon fails to fulfill the______ aspect of reliable customer services.
order delivery completeness
Citibank eliminates their own in-house helpdesk and call centers when these services are outsourced to third-party service providers in India. This is an example of how Citibank changes its ______ to better manage its relationships with service providers.
organizational structure
A firm needs to use the total cost of ______ to determine its supply-related costs.
ownership -When determining its supply-related costs, a firm needs to look at the total cost of ownership (TCO) of the supplies—not just their purchase price.
With the widespread use of social media ______, companies can no longer hide their unsustainable, unethical, and harmful business practices.
platforms
The ______ is the point where the supply chain is split into distinct ______ and ______ parts.
point of postponement; pull; push
By having customers preorder the latest versions of the iPhone, Apple is using ______ strategies to match supply and demand and reduce their inventory.
postponement
A ______ layout is often used in job-shop or batch production processes.
process
A hospital often uses ______ layouts.
process
Banks changing their lending practices and processes to better align with new government regulations on bank operations is an example of matching ______ decisions with the ______.
process selection; market's requirements
An example of specialized services offered by fulfillment centers is ______.
product assembly
Package labels may serve to communicate how to dispose of the package or product. Which functions of the packaging label does this describe?
product information
A ______ manufacturing system uses actual ______ rather than ______ to produce goods and services.
pull; customer orders; demand forecast
According to Chris Bredesen at the Rockefeller Gastropub, what are the top three qualities he is looking for in suppliers?
quality, on time deliveries, low costs
Ford entered into a ______ contract with its suppliers that allow Ford to change the quantity of its component based on the updated demand forecasts for its vehicles.
quantity-flexibility
Order delivery completeness is a factor in which dimension of the supply chain dimensions of customer service?
reliability
The convenience dimension of customer service can be measured by ______.
response time to urgent situations
Benetton, an apparel designer and manufacturer, uses airfreight for all its exports to achieve high levels of ______ and low levels of ______.
responsiveness; inventory
Cartons used to hold cans of soft drink are examples of ______ packaging.
secondary
Starbucks' effort in creating a homey, comfortable atmosphere and décor for its patrons is an example of how to consider the ______ in planning service layouts.
servicescape
An example of a project process is ______.
ship building
Proximity to customers is a critical success factor to determine the specific ______ to locate the facilities.
site
The highest level of collaborative relationships between the buyer and the supplier is a ______, an example of which is a ______.
strategic alliance; joint venture
Disney is able to stop doing business with several large paper suppliers in Asia that engage in questionable environmental policies. This is an example of how Disney is able to achieve its sustainability goal through ______.
strategic sourcing
The supplier management process starts with ______.
strategic sourcing
In online reverse auctions, ______ are competing for the business of the ______ by offering their products or services at ______ prices.
suppliers; buyer; lower and lower
The innovation in the use of drones increased the demand for this new product, which factor affecting demand management does this describe?
technological
When a snowstorm is forecasted for the area, Lowe's relies on demand management to stock their stores with snow shovels to match ______ against ______.
the total of actual and forecasted demand; capacity
UPS uses a coding scheme known as MaxiCode 2-D in its package labels for ______.
tracking
An example of nontangible supplies is ______.
transportation
Which of the following is a drawback associated with supply chain design and location decisions that involve operations in foreign countries?
transportation issues
Which mode of transportation provides great reach and flexibility?
trucks
In Phase IV, location decisions are made sequentially in three stages.
true
The region and site selection for a facility is particularly important when it comes to sustainability.
true
When purchasing noncritical or one-time supplies, a company only needs to have a purely transactional relationship with their suppliers that is based on price.
true
Vodafone's attempt to enter the Japanese market by selling European handsets failed because customers in that country were ______.
using a different handset technology
Puma uses biodegradable and compostable bags instead of boxes for its shoes. This is an example of improving sustainability in logistics by ______.
using innovative package design
A company is more likely to use faster modes of transportation if its customers are price sensitive.
False
A postponement strategy will work in all situations.
False
Demand forecasting is the process of estimating the long-term demand for a firm's products.
False
Having a backup pool of suppliers in countries with minimal language barrier is a way for a buyer firm to minimize political risks in global sourcing.
False
Materials handling refers to the long-distance movement, storage, control, and protection of materials and of people within a plant or a warehouse.
False
The product-process matrix classifies processes in terms of their degree of customer interaction and labor intensity.
False
To accelerate the forecasting process, Godiva uses a program called SmartForecasts to manage demand proactively through promotions to increase demand.
False
The make-to-order method of manufacturing offers the highest degree of product customization.
False -Engineer-to-order (ETO): This process offers the highest degree of product customization.
Forward contracts are an effective way to protect buying firms from suppliers who fail to meet delivery lead times because the buyer is not a key customer.
False -Market Risk: Stems from volatility in market prices caused by fluctuations in stock prices, exchange rates, interest rates, and commodity prices. Management and Mitigation Approach: Use approaches such as price hedging, forward contracts, quantity discounts, multiple suppliers, and supplier incentives, or postpone decisions to counter volatility in market prices..
On-time delivery is a meaningful measure for a manufacturer to evaluate its supplier's ability to deliver defect-free materials.
False -Supplier performance management (SPM) is a subset of supplier relationship management. The main focus of SPM is to determine whether suppliers are meeting their contractual obligations. SRM is a much broader concept in the sense that it focuses on enhancing the value of the relationship to both the buyer and the supplier through collaboration.
______ automation is made possible with numerically controlled machines.
Flexible
______ costs are higher in countries such as China and India because of poor and inefficient ______ facilities and practices in these countries.
Inventory; warehousing
What is the value in using costing system software?
It is used to monitor and maintain a low cost of goods sold.
The first thing service providers should do with managing demand is to ______.
eliminate bottlenecks
The decoupling point occurs at the ______ of a(n) ______ supply chain.
end; make-to-stock
Regional facility configuration belongs to Phase ______ of the supply chain design and location decision process.
2
Royal Caribbean Cruise Lines contracts with ______ to manage the large movement of food, beverages, raw ingredients, and supplies so that these deliveries are coordinated with the freight schedules.
3PL
The decision to select the exact site for locating various facilities in the supply chain is made in Phase ______ of the supply chain design and location decision-making process.
4
The purchases from suppliers often constitute more than ______ of a firm's expenses.
50%
Transportation costs account for more than ______ of total logistics costs.
50%
Which of the following is an example of the role sustainability plays in facilities' location decisions?
A company that manufactures products using recycled materials is located close to recycling centers.
______ help domestic companies prepare export documents that meet the foreign government's import requirements.
Export trading companies
______ are storage facilities where incoming shipments from various suppliers are sorted and batched and then delivered to buyers and spend little or no time in storage.
Cross-docking warehouses
Which of the following is a typical question that a firm must answer when considering the effect of sustainability on location decisions?
Does the facility have access to wind or solar energy?
A ______ auction is a type of online reverse auction in which the buyer starts with an initial low price and then gradually raises the price of the item until one of the suppliers agrees to provide it at that price.
Dutch
Technologies such as ______ are particularly important in case of product recalls and for tracking inventory in-transit in the global supply chain.
RFID
______ is a warehouse function that deals with product returns and disposing or recycling of packaging materials.
Reverse logistics
Which of the following is the technology used for exchanging design- and manufacturing-related information of a product in computer-interpretable format?
STEP
Which of the following is an assumption of using a breakeven analysis to find the best location on the basis of total costs?
The revenue per unit is the same regardless of where the goods are produced.
A fifth-party logistics provider is an independent logistics service provider that mainly specializes in e-business solutions.
True
Air transportation is used for products of small size but high value or those that are perishable such as blood supplies.
True
Demand management is the process of first determining accurately what the customer wants and then coordinating the processes and procedures both within the firm and across its supply chain to quickly and efficiently meet that demand.
True
Flexible processes are required for mass customization.
True
Personal and face-to-face communication are essential to good customer service.
True
Product profiling is a way to evaluate the alignment of the needs of a company's markets with its processes.
True
The environmental concerns of using fracking technology to extract natural gas and oil show how difficult it is to determine the sustainability impacts of a process.
True
To achieve process flexibility, mass customization combines the following strategies except ______.
asynchronous manufacturing
The goals of supplier management include the following except ______.
balancing efficiency
Which of the following processes is best suited for products in their growth stage of the product life cycle?
batch
The ______ effect suggests that in response to changes in customer demand, inventory fluctuations increase as you move further up in the supply chain from the retailer to the raw material supplier.
bullwhip
A bookstore enters into a contract with a book publisher that allows the bookstore to return unsold books to the publisher. This is an example of a ______ contract between the buyer and supplier.
buyback
An example of nonstrategic services is a(n) ______.
call-center service
Service demand management is unlike product demand management in that businesses in the service sectors ______.
cannot use inventories to satisfy future demand
Which key transportation metric is defined as the ability to transport a variety of different products?
capability
Some banks in the United States are open on Sundays to compete on the ______ supply chain dimension of customer service.
convenience
An example of indirect total cost of ownership is a(n) ______.
cost of poor quality
The service process design matrix classifies service processes in terms of their degree of ______ and ______.
customer interaction; labor intensity
Demand management begins with ______.
demand planning
Process types can be mapped to manufacturing methods according to the product's ______ and ______.
demand variability; complexity
When purchasing bulk supplies such as electric motors, an automobile manufacturer should use a(n) ______ sourcing strategy to achieve volume discounts.
dual
Mass customization combines the advantages of ______ and ______ processes.
job-shop; continuous flow
The fact that the warehouses of Sony's suppliers are located in close proximity to its factories is an example of having a supplier management program for Sony to operate its ______.
just-in-time inventory system
Penalty causes for missing deadlines are included in a contract with a supplier to protect buying firms from the risk of ______.
late service deliveries
The reason that localized supply chains are more responsive to order changes is that they often have shorter ______ times.
lead
How do companies move into the new global location to begin operations quickly?
lease existing facilities
Chicago has annual fixed costs of $55,000 and variable costs of $50 per unit. New York has annual fixed costs of $20,000 and variable costs of $100 per unit. For what range of output would New York be chosen?
less than 700
Bottleneck purchases are characterized as ______ and ______.
low value impact; high supply risk
Which of the following is a competitive strategy that affects supply chain and location decisions?
low-cost sourcing
Custom-built homes are examples of products manufactured using ______ methods.
make-to-order
An example of long-term demand planning decisions is ______.
making supply chain design and capacity planning decisions
Price hedging is a way to protect buying firms from the ______ risk.
market
Which of the following is a way to measure the impact of sustainability on a firm's financial performance?
measure return on investment on sustainability initiatives
Integrated logistics management refers to the practices used to control the ______ of products (and the associated costs) so that there is a continuous and uninterrupted flow of ______ from suppliers to manufacturers to the final consumers.
movement; materials and products
Order online and pickup in store is an example of a ______ system.
multichannel marketing
