Supply Chain chapters 1-13

Outbound transportation costs per unit tend to be lower than inbound costs, because inbound lot sizes are typically smaller.

False

The objective of every supply chain should be to maximize the profit of the manufacturer.

False

The major drivers of supply chain performance are customers, facilities, inventory, transportation, and information.

False aFacilities, inventory, transportation, information, sourcing, and pricing

Activities involved in the Supplier Relationship Management (SRM) macro process include: planning of internal production and storage. sourcing. order fulfillment. order management. None of the above.

Sourcing

Push processes may also be referred to as ________ processes.

Speculative

Which of the following is a form of safety capacity?

Use overtime. Carry extra workforce permanently. Use subcontractors. Purchase capacity from an open or spot market

The bullwhip effect causes:

a loss of supply chain coordination. distortion of demand information within the supply chain. different stages of the supply chain to have a very different estimate of what demand looks like. a loss of supply chain coordination and distortion of demand information within the supply chain only.

The fact that each stage in a supply chain forecasts demand based on the stream of orders received from the downstream stage results in:

a magnification of fluctuations in demand as we move up the supply chain from the retailer to the manufacturer.

_______ carriers offer a fast and fairly expensive mode of transportation for cargo.

air

An important factor that affects the increase in supply chain surplus that a third party provides is: scale. uncertainty. specificity of assets. All of the above. None of the above

all the above

What type of distribution network is typically well suited for commodity items?

retail storage with customer pick-up

The trucking industry consists of two major segments—truckload (TL) and less than truckload (LTL). LTL operators tend to:

run hub-and-spoke networks that allow for consolidation of partial loads.

Inventory held to satisfy demand that is higher than forecasted is:

safety inventory

Firms can significantly reduce safety inventory they require by physically aggregating inventories in one location. _______________, however, generally increases when inventory is aggregated.

transportation cost

There are four market segments that resellers will be able to serve in the PC market.

false

A group of venture capitalists will invest $4 million in the first quarter and then another $2 million in the second quarter for all the expenses related to starting up your company.

true

As a reseller, before you start making tactical decisions in marketing, you will need to analyze the initial __________.

market research data

Activities involved in the Customer Relationship Management (CRM) macro process include: planning of internal production and storage. strategic planning. marketing. supply planning. All of the above.

marketing

Efficient supply chains: respond quickly to demand. have higher margins because price is not a prime customer driver. maintain buffer inventory to deal with demand/supply uncertainty. maximize performance at a minimum cost. None of the above.

maximize performance at a minimum cost.

________ sales can lower inventory levels by aggregating inventories if most customers are willing to wait for delivery. However, for some products, such as groceries, ________ sales require the firm to perform tasks currently performed by the customer at retail stores, affecting both handling and transportation costs.

online

Which capacity determines how many workers you need to hire?

operating capacity

For push processes, a manager must forecast what customer demand will be in order to:

plan the level of production and transportation

A good forecasting method should:

predict the systematic component of demand and account for forecast errors.

The process by which a firm decides how much to charge customers for its goods and services is:

pricing

Third parties increase the supply chain surplus if they either increase value for the customer or decrease the supply chain cost relative to the firm performing the task in-house. A third party may aggregate procurement for many small players and facilitate economies of scale in ordering, production, and inbound transportation. What mechanism is the third party using to grow the surplus?

procurement aggregation

The number of different products/configurations that a customer desires from the distribution network is:

product variety

Each stage in a supply chain is connected through the flow of: people and data. materiel. trucks, trains, and planes. product, information, and funds. None of the above.

product, information, and funds

Inbound transportation costs are the costs incurred in bringing material into a facility. Outbound transportation costs are the costs of sending material out of a facility.

true

Information processing obstacles refer to situations where demand information is distorted as it moves between different stages of the supply chain, leading to increased variability in orders within the supply chain.

true

To improve the quality of these aggregate plans, forecast errors must be taken into account when formulating aggregate plans.

true

Tuckman's Group Development Model describes four stages that a team will go through in its sequence of decision making.

true

When selecting a mode of transportation, managers must account for unit costs and cycle, safety, and in-transit inventory costs that result from using each mode. Modes with high transportation costs can be justified if they result in significantly lower inventory costs.

true

The __________ illustrates the close relationship between all the functional strategies within a company.

value chain

When units move out of the warehouse to your customers faster than they come in from your factory, you will experience stock-outs and unhappy customers.

True

In practice an aggregate planner likely uses a combination of approaches which is referred to as the:

tailored or hybrid strategy

If a firm has high responsiveness to customer orders, this will result in lower transportation costs than if the firm decreased its responsiveness.

false

Intermodal traffic has declined considerably with the decreased use of containers for shipping and the rise of global trade. Containers are difficult to transfer from one mode to another.

false

Long-term forecasts are usually more accurate than short-term forecasts.

false

Lot size based quantity discounts reduce the bullwhip effect within the supply chain.

false

Managers can improve coordination within the supply chain by creating goals and incentives such that participants work primarily to reduce functional costs (i.e., local optimization).

false

Mature products with stable demand are usually the most difficult to forecast.

false

Outsourcing is the practice of using an organization's own personnel and resources to accomplish a supply chain function.

false

Qualitative forecasting methods are primarily subjective and rely on human judgment.

false

Suppliers will focus on the marketing and distribution of microcomputers in a business to business (B2B) environment.

false

Supply chain coordination requires each stage of the supply chain to focus on local objectives rather than taking into account the impact its actions have on other stages.

false

Temporal aggregation of demand results in an increase of transportation costs because it entails smaller shipments and increases the variation in shipment sizes from one shipment to the next. It does not hurt customer response time.

false

The Mumbai dabbawalas use a direct shipment network in order to pick up and deliver lunches every workday.

false

The minimum inventory parameter lets the plant manager know the upper limit on the number of units to leave on the shelf at the end of the quarter.

false

The shipper is the party that requires the movement of the product between two points in the supply chain. The carrier is the party that moves or transports the product.

false

The use of risk sharing between supply chain partners will result in locally optimal decisions that decrease the total supply chain profits.

false

Time series forecasting methods are based on the assumption that past demand history is a poor indicator of future demand and are most appropriate when little historical data are available.

false

Total logistics costs are the sum of customer, information, and sourcing costs for a supply chain network.

false

Transportation plays a key role in every supply chain because products are usually produced and consumed in the same location

false

With an uncoordinated supply chain, each stage tries to maximize its own profits, resulting in actions that often increase total supply chain surplus.

false

You have a factory with a fixed capacity of 50 units per day. You can set your operating capacity to produce 3,500 units for the quarter (assume 65 workdays in a quarter).

false

You should perform a process improvement study to figure out where you are and to discover different routes to your strategic objectives.

false, strategic analysis

Which capacity is determined by the size of your manufacturing plant?

fixed capacity

Indirect materials

goods used to support the operation of a firm.

As a supplier, the greater the variety of your brands, the __________ to make production line changeovers.

greater the cost and time.

A poor/inappropriate distribution network can:

have a significant negative impact on the profitability of a firm

The main advantage of in-transit merge over drop-shipping is:

lower transportation cost and improved customer experience

What type of distribution network is better suited to highly differentiated products?

manufacturer storage with direct shipping (drop shipping)

The lack of coordination hurts both responsiveness and cost in a supply chain by making it more expensive to provide a given level of product availability. The impact of the lack of coordination includes:

manufacturing cost. inventory cost. transportation cost. replenishment

A supply chain includes only the organizations directly involved in supplying components needed for manufacturing.

False

According to the course syllabus, extra credit opportunities can be anticipated as a chance to makeup for a missed quiz or missed assignment submission.

False

Agile intercompany scope refers to the static context of strategic fit, that is, supply chain partners and customer needs do not change over time.

False

Strategic fit does not necessarily require that both competitive strategy and supply chain strategy have aligned goals

False

Supply chain efficiency is directly related to the cost of making and delivering a product to the customer. Decreases in cost lower efficiency.

False

Supply chain strategy is an explicit specification of the logistics strategy and therefore should not include supplier strategy or operations strategy.

False

Which of the following is an advantage of manufacturer/distributor storage with customer pickup?

transportation cost is lower than the use of package carriers

A customer does not necessarily want the highest level of performance along all dimensions of customer service, including response time, product variety, product availability, customer experience, order visibility, and returnability.

true

The course syllabus contains the following statement: The instructor is your first point of contact for any information technology issue, such as a problem with Canvas.

False

The degree of supply chain responsiveness should be consistent with the implied uncertainty. The goal is to target high responsiveness for a supply chain facing low implied uncertainty, and efficiency for a supply chain facing high implied uncertainty

False

The goal of aggregate planning is to satisfy demand in a way that minimizes profit

False

To retain strategic fit, supply chain strategy must not be adjusted over the life cycle of a product and as the competitive landscape changes.

False

Inventory encompasses all current assets within a supply chain.

False all raw materials, works in process, and finished goods

The sharing of information can help a supply chain meet customer needs at lower cost, therefore sharing more information across a supply chain is always better than sharing the minimum information required.

False marginal value of info shared becomes diminished

Firms must evaluate the risks when they move any function to a third party. Which of the following is not a risk to the firm?

Gain of supply chain visibility.

Aggregate planning is a process by which a company determines levels of capacity, production, subcontracting, inventory, stockouts, and even pricing over a specified time horizon.

True

Aggregate planning solves problems involving aggregate decisions rather than stock keeping unit (SKU)-level decisions.

True

As the number of facilities in a supply chain increases, the required inventory increases.

True

Both markdowns and lost sales reduce net income and arguably represent the biggest impact of supply chain performance on the financial performance of a firm.

True

Faster transportation modes are usually more expensive than slower transportation modes, and allow a supply chain to be more responsive.

True

Firms must decide whether production facilities will be flexible (more responsive, many types of products) or dedicated (more efficient, limited number of products).

True

Information consists of data and analysis concerning facilities, inventory, transportation, costs, prices, and customers throughout the supply chain. Information is potentially the biggest driver of performance in the supply chain because it directly affects each of the other drivers.

True

Inventory exists in the supply chain because of a mismatch between supply and demand.

True

The cycle view of a supply chain holds that the processes in a supply chain are divided into a series of activities performed at the interface between successive stages.

True

The cycle view of a supply chain is useful when considering operational decisions because it specifies the roles and responsibilities of each member of the supply chain. The push/pull view is useful when considering strategic decisions relating to supply chain design.

True

The first step in achieving strategic fit between competitive and supply chain strategies is to understand customers and supply chain uncertainty.

True

The following situation would likely not work well. A situation in which marketing is publicizing a company's ability to provide a large variety of products very quickly; simultaneously, distribution is targeting the lowest cost means of transportation.

True

The high-utilization facility will have difficulty responding to demand fluctuations.

True

The push/pull view of a supply chain holds that the processes in a supply chain are divided into two categories depending on whether they are initiated in response to or in anticipation of customer orders.

True

The required textbook for this class is Supply Chain Management: Strategy, Planning, and Operations (Seventh Edition) by S. Chopra.

True

To create an aggregate plan, a company must specify the planning horizon for the plan and the duration of each period within the planning horizon.

True

Transportation entails moving inventory from point to point in the supply chain. Transportation choices have a large impact on supply chain responsiveness and efficiency.

True

A third party may be able to provide a sustainable growth of surplus by aggregating to a higher level than the firm itself. The growth in surplus comes from aggregating capacity, inventory, inbound/outbound transportation, warehousing, procurement, information, receivables, or relationships to a level that the firm cannot achieve on its own.

true

Aggregate forecasts are usually more accurate than disaggregate forecasts.

true

All supply chain decisions made before demand has materialized are made to a forecast.

true

At the highest level, performance of a distribution network should be evaluated along two dimensions: (1) Value provided to the customer. (2) Cost of meeting customer needs.

true

Causal forecasting methods assume that the demand forecast is highly correlated with certain factors in the environment (e.g. state of the economy, interest rates).

true

Distribution refers to the steps taken to move and store a product from the supplier stage to a customer stage in the supply chain

true

Firms must consider a tailored sourcing strategy that couples responsive onshore or near-shore sources with low-cost offshore sources. The responsive onshore/near-shore sources should focus on high-value products with high demand volatility, whereas the low-cost offshore sources should focus on the lower-value, high-volume products.

true

For pull processes, a manager must forecast what customer demand will be in order to plan the level of available capacity and inventory

true

Forecasting errors are dealt with in aggregate plans using safety inventory and/or safety capacity.

true

Forecasts are usually inaccurate.

true

If you produce too many units, you risk having unsold inventory that will tie up money and possibly lead to cash shortages.

true

Inventory aggregation decisions must account for inventory and transportation costs. Inventory aggregation decreases supply chain costs if the product has a high value-to-weight ratio, high demand uncertainty, low transportation cost, and customer orders are large.

true

Milk runs make sense when the quantity destined for each location is too small to fill a truck but multiple locations are close enough to each other such that their combined quantity fills the truck.

true

Omni-channel retailing refers to the use of multiple channels to interact with customers and fulfill their orders. The interactions between a customer and a retailer is primarily in terms of three flows—information, product, and funds.

true

Pricing obstacles refer to situations in which the pricing policies for a product lead to an increase in variability of orders placed

true

Purchasing, also known as procurement, is the process used to acquire raw materials, components, products, services, or other resources from suppliers.

true

Sharing the rewards from improvements can induce performance improvement from a supplier along dimensions, such as lead time, for which the benefit of improvement accrues primarily to the buyer but the effort for improvement comes primarily from the supplier.

true

Sourcing is the entire set of business processes required to purchase goods and services.

true

Strategic thrusts are policies or guidelines your firm needs to stick to in order to follow your strategy.

true

Supplier performance should be compared based on the impact on total cost of ownership. In addition to acquisition costs, ownership and post-ownership costs should also be considered. In many instances, a higher acquisition cost is more than compensated for by lower ownership and post-ownership costs.

true

The Fundamentals of Supply Chain Management simulation is set for 6 quarters or decision rounds.

true

The aggregate planner must make a trade-off between capacity, inventory, and backlog costs.

true

The bullwhip effect distorts demand information within the supply chain.

true

The bullwhip effect is the increasing fluctuation in orders as they move up the supply chain.

true

The retail storage with customer pickup distribution network classification is also referred to as "drop-shipping."

true

The shipper is the party that requires the movement of the product between two points in the supply chain. The carrier is the party that moves or transports the product.

true

Which of the following is not a financial asset recorded on the balance sheet?

Net income

The Old Guys Rule Surfboard Production (OGRSP) Co. produces on average 5 surfboards per day, which are delivered to surf shops all over the world. Their on-hand inventory is 50 surfboards ranging from raw material to finished goods. Little's Law tells us that I = DTwhere: I = inventory; D = throughput (or demand); and T = flow time. What is the average flow time at OGRSP Co.?

10 days 50/5

A surf shop has experienced weekly demand for surfboard wax of D1 = 4, D2 = 5, D3 = 8, and D4 = 5 units over the last four weeks. Forecast demand for Week 5 using a three-week moving average.

6

Successful supply chain management requires which of the following decision phases? Supply chain strategy/design (strategic planning). Supply chain planning (tactical planning). Supply chain operation (operational planning). All of the above.

All of the above

Which of the following is a stage within a typical supply chain? Customer. Retailer. Manufacturer. Supplier. All of the above

All of the above

Which transportation network design option has the storing of product at an intermediate location between supplier and buyer locations?

All shipments via central DC.

Seven-Eleven's supply chain strategy in Japan can be described as attempting to micro-match supply and demand using rapid replenishment. What has Seven-Eleven Japan done to develop capabilities that support its supply chain strategy? Their facility location choices are to saturate an area with stores, thereby making it easy for customers to shop and their own delivery trucks to move from store to store to replenish inventory. Their inventory system is run on an information system that transmits directly to the supplier and distribution center; goods are produced using a pull system to replace what has been sold during that delivery period. Their transportation system is flexible to maximize responsiveness while also achieving efficiency. Their suppliers are required to deliver to a distribution center where products are sorted by temperature. All of the above.

All the above

Supply chain responsiveness includes a supply chain's ability to: meet short lead times. handle a large variety of products. meet a high service level. handle supply uncertainty. All the above

All the above

Which of the following is not a benefit of effective sourcing decisions?

Better economies of scale can be achieved if orders within a firm are disaggregated.

Another useful metric is the ______________________, which roughly measures the average amount of time from when cash enters the process as cost to when it returns as collected revenue.

C2C cycle

The value of a final product may vary for each customer and can be estimated by the maximum amount the customer is willing to pay for it. The difference between the value of the product and its price remains with the customer as: consumer surplus. supply chain surplus. supply chain profitability. All of the above.

Consumer Surplus

Supply chain surplus involves what two parts? Manufacturing cost and selling price. Customer value and supply chain cost. Customer value and high quality products. Reliable transportation and supply chain cost. All of the above.

Customer value and supply chain cost.

When designing a sourcing strategy, it is important for a firm to: A: develop a process that will procure all materials at the lowest possible cost. B: maintain a record of all contracts, receipts, issues and other transactions in the event of lawsuits. C: maximize the profitability of the distributors within the supply chain. D: be clear on the factors that have the greatest influence on performance and target improvement on those areas

D be clear on the factors that have the greatest influence on performance and target improvement on those areas

The measure of forecast error where the amount of error of each forecast is squared and then an average is calculated is:

Mean squared error

A planner must build a rough master production schedule (MPS) first, in order to prepare an aggregate plan.

false

Which of the following is not a supply chain macro process? Customer Relationship Management (CRM). Internal Supply Chain Management (ISCM). Personal Relationship Management (PRM). Supplier Relationship Management (SRM). All of the above.

Personal Relationship Management

There are five major obstacles listed in the text to coordination in a supply chain. Which of the following is not one of these major obstacles?

Quality obstacles.

A firm can increase ______________________ by growing the profit margin and/or increasing the asset turnover. ROE ROA ROFL INVT none of the above

ROA

If a company carries no debt, what can be determined about return on equity (ROE) and return on assets (ROA)?

ROE = ROA

Pull processes may also be referred to as __________ processes.

Reactive

Forecasts should include only the expected value of the forecast. The measure of forecast error is not a key input for supply chain decision making.

false

Incentives that focus only on the local impact of an action result in decisions that maximize total supply chain profits.

false

The measure of whether a forecast method consistently over- or underestimates demand is:

Tracking signal

What trade-offs do managers need to consider when making transportation decisions?

Transportation cost versus inventory cost and transportation cost versus customer responsiveness only.

A company's competitive strategy defines the set of customer needs that it seeks to satisfy through its products and services.

True

A planning horizon is usually between three and eighteen months for an aggregate plan.

True

When either the supply of raw materials or the demand for the finished product is highly variable, forecasting and the accompanying managerial decisions:

are very difficult

For supplier selection in general, ___________ are best used when the quantifiable acquisition cost is the primary component of total cost.

auctions

The operational parameter concerned with demand not satisfied in the period in which it arises, but carried over to future periods is:

backlog

The __________ is the most important measure of your firm's total performance.

balanced scorecard

__________ started with the business model of having physical storefronts in high-traffic neighborhood locations. The store operations were streamlined by a computerized system for inventory control and checkout. Its primary value addition was to bring recent content close to the customer in the form of a VHS tape (originally) or DVD. By building stores that were larger than existing mom-and-pop rental stores, __________ offered customers a wider choice of movies and better availability on recent releases. Blockbuster. Netflix. Redbox. Sony. None of the above

blockbuster

Which of the following is not a stage in Tuckman's Group Development Model?

bonding

If the assets required are specific to a firm and cannot be used by others, outsourcing to a third party is likely to increase the supply chain surplus.

false

The __________ measures how much a market segment likes the design of each brand on a scale from 0 to 100.

brand judgement

Which of the following is a form of safety inventory?

build and carry extra inventories

Pro forma accounting statements will reflect all of your expenses and projected revenues during the __________ quarter.

current

Tailored transportation is the use of different transportation networks and modes based on: customer density and distance from warehouse. customer size. product demand and value. all the above none

customer density and distance from warehouse. customer size product demand and value.

The uncertainty of customer demand for a product is the: rate of strategic uncertainty. demand uncertainty. implied demand uncertainty. average forecast error.

demand uncertainty.

A company's supply chain strategy: defines the set of customer needs that it seeks to satisfy through its products and services. specifies the portfolio of new products that it will try to develop. specifies how the market will be segmented and how the product will be positioned, priced, and promoted. determines the nature of procurement and transportation of materials as well as manufacture and distribution of the product. determines how it will obtain and maintain the appropriate set of skills and abilities to meet customer needs.

determines the nature of procurement and transportation of materials as well as manufacture and distribution of the product.

Companies in the same industry often select very different distribution networks because:

different companies have different objectives for their supply chain

The cost of maintaining the plant and paying the workers while your production line is idle is called __________ cost.

excess capacity cost

A decrease in the desired response time decreases the number of facilities required in the distribution network.

false

A firm gains the most by outsourcing to a third party if its needs are large, highly certain, and not shared by other firms sourcing from the same third party.

false

A good aggregate plan will result in a large amount of excess inventory and capacity, thereby raising costs.

false

A fundamental aspect of successful collaboration is:

identification and resolution of exceptions.

The uncertainty that exists due to the portion of demand that the supply chain is required to meet is the: rate of strategic uncertainty. demand uncertainty. implied demand uncertainty. average forecast error. None of the above

implied demand uncertainty.

As companies have outsourced supply chain activities, it has become harder to align the goals of all parties involved. Supply chain __________ can have unintended consequences when the third party's information and actions are hard to observe.

incentives

All raw materials, work in process, and finished goods within a supply chain are known as:

inventory

Holding __________ is one of the most common levers used in practice to deal with supply chain uncertainty. capacity. inventory. time. information.

inventory

________ is a cost factor performance characteristic of Retail Storage with Customer Pickup that is higher than all other distribution network options.

inventory

The cost of holding inventory incurred by the shipper's supply chain network is:

inventory cost

Temporal aggregation A) is the process of combining orders across time. B) increases a firm's responsiveness. C) decreases transportation costs because of economies of scale. D) all of the above

is the process of combining orders across time

The strategy where a stable machine capacity and workforce are maintained with a constant output rate, with inventory levels fluctuating over time, is the:

level strategy

The set of business processes required to purchase goods and services is known as:

sourcing

Zara has a _________ strategy that varies by product type. For basic products such as white T-shirts, Zara aims for efficiency with factories in low cost countries because demand is predictable. For trendy products for which demand is unpredictable, Zara aims for responsiveness with factories in Europe.

sourcing

A company's product development strategy: defines the set of customer needs that it seeks to satisfy through its products and services. specifies the portfolio of new products that it will try to develop. specifies how the market will be segmented and how the product will be positioned, priced, and promoted. determines the nature of procurement and transportation of materials as well as manufacture and distribution of the product. determines how it will obtain and maintain the appropriate set of skills and abilities to meet customer needs.

specifies the portfolio of new products that it will try to develop

A(n) __________ is a plan or set of policies designed to take you to a specific goal.

strategy

One drawback of vendor managed inventory (VMI) arises because retailers often sell products from competing manufacturers that are ___________ in the customer's mind.

substitutes

Any observed demand can be broken down into two components. Observed demand (O) =

systematic component S + random component R

The moving average forecast method is used when:

systematic component S= level

When supplying multiple customer segments with a wide variety of products through several channels, a firm must __________ its supply chain to achieve strategic fit. This requires sharing operations for some links in the supply chain, while having separate operations for other links. tailor. trim. slow-down. speed-up.

tailor

For any supply chain, the source of revenue is generated by: efficient operations. information flows. the customer. product flows. all the above

the customer

Information distortion is exaggerated by:

the lack of information sharing between supply chain stages.

When a single stage controls replenishment decisions for the entire chain (e.g., continuous replenishment programs or vendor managed inventory), coordination is achieved because:

the problem of multiple forecasts is eliminated.

What difference in the retail environment may justify the fact that the fast-moving consumer goods supply chain in India has far more distributors than in the United States?

the sheer volume of small store owners in India requires a large number of distributors to service them

The planning horizon is:

the time period over which the aggregate plan is to produce a solution.

Aggregate planning, to be effective, requires inputs from:

throughout the supply chain

Forecasting methods that use historical demand to arrive at a forecast are known as:

time series

The operational parameter concerned with the number of workers/units of capacity needed for production is:

workforce

Which of the following is a tactical decision made by a supplier?

Expand your factory. Invest in the manufacturing information system to streamline your distribution. Perform studies to identify and address quality issues. Take actions to better serve your resellers.

The main advantage of ________ forecasting is that estimates incorporate all new data that are observed

adaptive

Which of the following is not a distinct aggregate planning strategy for achieving balance between capacity, inventory, and backlog costs?

adjustable strategy

To improve overall profits, the supplier must share risk in a way that encourages the buyer to purchase more and increase the level of product availability. This requires the supplier to share in some of the buyer's demand uncertainty. What is an approach to risk sharing between the supplier and the buyer? Buybacks or returns. Revenue sharing. Quantity flexibility. All of the above. None of the above.

all of the above

It is important to focus on total cost of ownership (TCO) when selecting a supplier. What does TCO include? Supplier price. Delivery costs. Environmental costs. All of the above.

all the above

Why has same-day delivery of pizza been successful, whereas the practice has failed in other settings? A Temporal aggregation of orders. B Many delivery locations close to the customer. C Relatively low variety of ingredients held in inventory. D All of the above. E Many delivery locations close to the customer and relatively low variety of ingredients held in inventory only

all the above

The scope of strategic fit refers to the functions and stages within a supply chain that coordinate strategy and target a common goal. As the scope of strategic fit is enlarged to include the entire supply chain, actions are evaluated based on their impact on: the transportation function. overall supply chain performance. optimizing local performance. minimizing the cost of each operation. None of the above

overall supply chain performance.

Rationing schemes that allocate limited production in proportion to the orders placed by retailers:

result in a game in which retailers try to increase the size of their orders to increase the amount supplied to them. lead to a magnification of the bullwhip effect. lead to the manufacturer being left with a surplus of product and capacity. lead to a magnification of the bullwhip effect and lead to the manufacturer being left with a surplus of product and capacity only.

Because supply chain operational decisions are being made in the __________, there is less __________ about demand information. mid-term; certainty. short-term; uncertainty. long-term; certainty. long-term; uncertainty.

short-term; uncertainty

More expensive modes of transport typically have:

shorter lead times and smaller minimum shipment quantities.