ISDS 3115 Final

A

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) vendor-managed inventory. B) postponement. C) single stage control of replenishment. D) e-procurement.

C

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

A

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

D

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

D

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

A

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) postponement. B) the bullwhip effect. C) drop shipping. D) vendor-managed inventory.

A

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

B

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

B

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

A

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

B

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

B

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

D

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

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

C

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

C

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

B

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) redundant databases D) secure IT systems

A

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

A

Which of the following statements is NOT true regarding channel​ assembly? A) Channel assembly sends individual​ components, modules, and finished​ products, to the distributor. B) Channel assembly represents one way to implement postponement. 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.

D

Which of the following statements is NOT true regarding the bullwhip​ effect? A) Bullwhip fluctuations in the supply chain decrease customer service and profitability. B) Inaccurate information results in distortions and​ fluctuations, causing what is known as the bullwhip effect. C) Bullwhip fluctuations in the supply chain increase the costs associated with​ inventory, transportation, shipping and receiving. D) 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.

B

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

B

Which of the following statements is true regarding​ cross-sourcing? A) Cross-sourcing enhances technological skills. 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 describes suppliers who become part of a company coalition. D) Cross-sourcing develops the ability to produce goods or services previously purchased or actually buying a supplier or distributor.

C

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