ISDS 3115 CH 11 study plan concepts

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

A. closed-loop supply chain

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

B. a satisfied customer.

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

B. is a​ fast-growing mode of shipping.

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

D. outsourcing

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

D. decreased total logistics cost

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

A. A​ closed-loop supply chain is a designed to optimize only reverse flows.

Which of the following statements is NOT one of the differentiation strategy​ decisions? A. Use buffer stocks to ensure speedy supply. B. Minimize inventory to avoid product obsolescence. C. Modular design to aid product differentiation. D. Gather and communicate market research data.

A. Use buffer stocks to ensure speedy supply.

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

A. blanket order

A response strategy requires suppliers be selected based primarily on A. capacity, speed, and flexibility. B. being willing to share information. C. product development skills. D. cost.

A. capacity, speed, and flexibility.

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

A. offer lower prices in the short term.

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

A. rapid​ response, product​ choice, and service.

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

A. ​"make-or-buy" and outsourcing decisions.

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

B. Channel assembly sends individual​ components, modules, and finished​ products, to the distributor.

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

B. Cross-sourcing uses one supplier for a component and a second supplier for another​ component, where each supplier acts as a backup for the other.

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

B. Finding the optimal number of facilities represents a critical and static decision.

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

B. Institute for Supply Management

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

B. alternate sourcing

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

B. careful​ selection, monitoring and effective contracts with penalties

The cost to produce the goods or services sold for a given period is referred to as A. inventory turnover. B. cost of goods sold. C. inventory investment. D. weeks of supply.

B. cost of goods sold.

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

B. drive down inventory​ investment, lower delivery​ costs, and improve delivery reliability and speed.

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

B. form a​ long-term relationship.

Which of the following statements is NOT one of the response strategy​ decisions? A. low setup time B. gather and communicate market research data C. use buffer stocks to ensure speedy supply D. fast transportation

B. gather and communicate market research data

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

B. purchasing

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

B. supplier evaluation

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

C. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting.

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

C. Prices are based upon supplier costs.

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

C. The bullwhip effect occurs as order are relayed from​ retails, to​ distributors, to​ wholesalers, to​ manufacturers, with fluctuations decreasing at each step in the sequence.

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

C. keiretsu networks

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

C. petroleum

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

C. purchasing contracts that address price fluctuations

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

C. ​vendor-managed inventory.

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

D. Increase the duplication of tasks.

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

D. Speed is often very important.

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

D. is increasingly using computers to manage its operations.

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

D. market-based price model

Three common measures of supply chain performance​ are: A. percentage invested in​ inventory, inventory​ turnover, and​ debt/equity ratio. B. percentage invested in​ inventory, debt/equity​ ratio, and weeks of supply. C. debt/equity ratio, inventory​ turnover, and weeks of supply. D. percentage invested in​ inventory, inventory​ turnover, and weeks of supply.

D. percentage invested in​ inventory, inventory​ turnover, and weeks of supply.

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

D. postponement.

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

D. vertical integration