ISQS 3344 CH12
Managing orders, transportation, and distribution to provide goods and services is part of the ________ function of the Supply Chain Operations Reference (SCOR) model. a. deliver b. make c. source d. plan
A
The Pharmaceutical Manufacturers Association defines a ________ as one that, after extensive investigation, is found to provide material of such quality that routine testing on each lot received is unnecessary. a. certified supplier b. return facilitator c. licensed franchisor d. contract manufacturer
A
________ is the discipline of managing the flow of materials and transportation activities to ensure adequate customer service at reasonable cost. a. Logistics b. Procurement c. Scheduling d. Integration
A
If an online retail store has cost of goods sold equal to $2 million, has 200 operating days in a year, and has a total average on-hand inventory of $500,000, the cost of goods sold per day is ________. a. $2,500 b. $10,000 c. $7,500 d. $15,000
B
TekSupply Inc., an automobile parts supplier, held an average automobile parts inventory of $4 million last year. Its cost of goods sold was $25 million. Therefore, the automobile parts experienced an inventory turnover of ________ turns last year. a. 4.25 b. 6.25 c. 9.5 d. 2.5
B
________ refers to managing the flow of finished goods, materials, or components that may be unusable or discarded through the supply chain from customers toward either suppliers, distributors, or manufacturers for the purpose of reuse, resale, or disposal. a. Scheduling b. Reverse logistics c. Process design d. Response management
B
In the context of the metrics used to identify improvements to the operation of supply chains, financial measures ________. a. include perfect order fulfillment and perfect delivery fulfillment b. calculate order fulfillment lead time in supply chains c. show how supply chain performance affects the bottom line d. show how quickly goods move through supply chains
C
Josh Smith, the materials manager at a retail store, has determined that a particular product experienced 5 turns last year, with an annual sales volume of $15 million. What was the average inventory value for this product last year? a. $2.5 million b. $1 million c. $3 million d. $4.5 million
C
Which of the following best defines inventory turnover? a. It is a measure of the number of perfect orders. b. It is the time taken to fill a customer's order. c. It is a measure of how quickly goods are moving through the supply chain. d. It is the cost associated with repairs of goods that have been returned.
C
Which of the following is a disadvantage of vendor-managed inventory (VMI)? a. It prevents vendors from making production decisions using downstream customer demand data. b. It does not allow vendors to view inventory needs from the customer's perspective. c. It often results in higher customer inventories than necessary. d. It prohibits the use of customer information, which leads to poor control of inventory and capacity.
C
Which of the following is true of order amplification? a. Order amplification decreases as one moves back up the supply chain away from the retail customer. b. Increasing price fluctuations can help manage order amplification. c. Order amplification in the supply chain leads to the bullwhip effect. d. Large order sizes can help manage order amplification.
C
Which of the following is true of purchasing? a. It is critical to satisfy employees' needs and expectations. b. The delivery of goods and services is the responsibility of the purchasing function of a supply chain. c. It can have a significant impact on total supply chain costs. d. The principal goal of purchasing is to source products from a single supplier to avoid capacity risks.
C
________ specialize in handling all aspects of customers giving back a manufactured good or delivered service and requesting their money back, repairing the manufactured good and giving it to the customer, and/or invoking the service guarantee. a. Certified suppliers b. Process designers c. Return facilitators d. Demand forecasters
C
A(n) ________ is any entity—real or virtual—that coordinates and shares information between buyers and sellers. a. franchisor b. investor c. manufacturer d. intermediary
D
In the context of measuring supply chain performance, the goal of sustainability measures is to ________. a. have a byproduct-free production process b. reduce the order cycle time for all customers c. minimize the time taken to fill a customer's order d. have a carbon-neutral supply chain
D
ProShopper, a sportswear store, held an average sportswear inventory of $10 million last year and reported an inventory turnover of 5 times per year. What was its cost of goods sold? a. $20 million b. $40 million c. $10 million d. $50 million
D
Speedex, an automobile company, has an annual sales volume of $3 million, cost of goods sold equal to $2 million, total average on-hand inventory of $600,000, and 150 operating days in a year. What is the daily revenue earned by the company? a. $30,000 b. $40,000 c. $10,000 d. $20,000
D
The ________ function of a supply chain is responsible for selecting transportation carriers and managing company-owned fleets of vehicles. a. integration b. scheduling c. procurement d. logistics
D
________ is inventory that has been ordered but is in transit. a. Anticipation inventory b. Decoupling inventory c. Buffer inventory d. Pipeline inventory
D
________ is the supply chain function responsible for acquiring raw materials, component parts, tools, services, and other items required from external suppliers. a. Job design b. Integration c. Scheduling d. Procurement
D