MGMT 339 - Ch. 14
A new product development team that is composed of product and process engineers, marketers, quality specialists, and buyers that work together to make sure the new product can actually be built is engaging in: A) concurrent engineering. B) joint application development. C) reverse logistics. D) core process design.
A
Examples of radio frequency identification (RFID) could include all of the following EXCEPT: A) tracking the status of engineering changes during development of a new product line. B) tracking cases and pallets of products into and out of warehouse inventories. C) air travel use for baggage tracking. D) tracking the flow of parts through a manufacturing process
A
One electronics manufacturer manages risk by making agreements with factories well in advance to guarantee productive capacity at an agreed price. If their product is popular, then they can use that productive capacity during an otherwise busy season at a lower cost. Such an agreement could best be described as: A) a futures contract. B) low-cost hopping. C) theory of constraints management. D) the bullwhip effect.
A
One of the benefits of a cooperative orientation in supplier relationships is: A) the buyer sometimes suggests ways to improve the supplier's operations. B) the supplier implements its own quality standards. C) the buyer does not have to share much information with the supplier. D) the supplier has complete freedom in choosing the delivery time.
A
One source of disruption caused by the internal supply chain is: A) forecast error. B) underfilled shipments. C) volume changes. D) late deliveries.
A
Suppliers can gain power from a number of sources in the buyer / supplier relationship. When a buyer has access to knowledge, information and skills desired by the supplier, this is called a(n) ________ source of power. A) expert B) reward C) referent D) coercive
A
The stage of new product or service development that links the creation of new services or products to the corporate strategy of the firm is called: A) design. B) analysis. C) development. D) full launch.
A
Use the following to answer the questions below. The Steele Bike Company has completed a total cost analysis for two suppliers of bicycle frames to support their business. They also consider on-time speed, top quality and customization in their selection process. Each criterion is given a weight (total = 100 points), and each supplier is scored on each criterion (1 = poor, 10 = excellent). The data are shown in the following table. CRITERION WEIGHT ACME STATE Total Cost 15 8 4 On-Time Delivery 20 5 7 Top Quality 30 7 6 Customization 35 4 6 Refer to the instruction above. Using the preference matrix (total weighted score) approach for selecting suppliers, which supplier should Steele select? A) State B) Acme C) Either is acceptable—their preference matrix scores are the same. D) More information is needed to make this decision.
A
What services are typically offered by a 3PL? A) transportation B) product design C) catalog hub D) auction
A
Which of the following changes would increase the likelihood of a supply chain experiencing the bullwhip effect? A) engineering changes to the design of a product B) instituting a more accurate materials management information system C) closely coordinating promotions with the internal marketing department and suppliers D) using a more reliable delivery company
A
Which of the following is NOT an advantage the Internet provides for a firm's order placement process? A) greater variety and better quality of products available B) cost reduction C) increase in revenue flow D) pricing flexibility E) global access
A
Which one of the following statements is TRUE about purchasing? A) Purchasing's primary role is to satisfy the firm's long-term supply needs. B) Purchasing's primary role should be placing and tracking orders. C) Purchasing's primary role is to negotiate lower prices. D) Purchasing's primary role is to negotiate prices and delivery dates.
A
A company adopts the supply chain strategy of contracting with a number of geographically dispersed suppliers just in case prices rise in one part of the world. This approach is known as: A) price hopping. B) hedging. C) outsourcing. D) futures.
B
Approaches to e-purchasing include all of the following EXCEPT: A) catalog hubs. B) radio frequency identification (RFID). C) exchanges. D) electronic data interchange (EDI).
B
Possible causes of disruption due to internal supply chain problems are: A) late deliveries. B) machine breakdowns or inexperienced workers. C) product and service mix changes. D) underfilled shipments.
B
The SCOR model focuses on the basic supply chain processes of: A) source, control, operate, return. B) plan source, make deliver, return. C) purchase, operate, control, logistics. D) operations, marketing, finance.
B
The SCOR model requires a(n): A) three-tier supply chain. B) point of reference. C) make-to-order or assemble-to-order product. D) process view.
B
The bullwhip effect is characterized by: A) ordering patterns that experience increasing variance as you proceed downstream in the chain. B) ordering patterns that experience increasing variance as you proceed upstream in the chain. C) purchasing patterns that experience increasing variance downstream in the chain. D) purchasing patterns that experience decreasing variance as you proceed upstream in the chain.
B
The product development team ensures compatibility of the proposed product with corporate strategy and regulatory standards in the: A) design stage. B) analysis stage. C) development stage. D) full launch stage.
B
Use the following to answer the questions below. The Steele Bike Company has completed a total cost analysis for two suppliers of bicycle frames to support their business. They also consider on-time speed, top quality and customization in their selection process. Each criterion is given a weight (total = 100 points), and each supplier is scored on each criterion (1 = poor, 10 = excellent). The data are shown in the following table. CRITERION WEIGHT ACME STATE Total Cost 15 8 4 On-Time Delivery 20 5 7 Top Quality 30 7 6 Customization 35 4 6 Refer to the instruction above. Using the preference matrix approach for selecting suppliers, what is Acme's total weighted score? A) 100 B) 570 C) 24 D) 590
B
Which of the following is NOT an advantage resulting from a firm outsourcing its customer service process? A) Specific detailed questions can be answered by the customer service representative. B) The firm gains more control over the customer interface process. C) Customer service labor costs are low. D) Automated systems are replaced by human contact.
B
Which of the following is NOT an external cause of supply chain disruptions? A) late deliveries B) new service or product introductions C) customer service or product mix changes D) underfilled shipments
B
Which of the following statements about cross-docking is NOT correct? A) Cross-docking is packing products on incoming shipments so they can be easily sorted for outgoing shipments based on their final destination. B) Cross-docking reduces inventory and storage space requirements, but handling costs and lead times tend to increase. C) Items are moved from incoming vehicles to outgoing vehicles without being stored in warehouse inventory. D) Inbound and outbound shipments must be tightly coordinated for cross-docking to work
B
One source of disruption caused by the external supply chain is: A) product or sales promotions. B) new product or service introduction. C) late deliveries. D) engineering changes.
C
Suppliers can gain power from a number of sources in the buyer / supplier relationship. When a supplier values identification with a buyer, this is called a(n) ________ source of power. A) expert B) reward C) referent D) legal
C
The practice of selecting suppliers and giving them significant responsibility for the design of certain components or systems of the product is called: A) value analysis. B) locus of control. C) presourcing. D) vendor-managed inventories.
C
The stage of new service or product development at which personnel are trained and some pilot runs can be conducted to look for possible problems in production is called: A) design. B) analysis. C) development. D) full launch.
C
Which of the following changes would decrease the likelihood of the bullwhip effect? A) changing the mix of items in an order B) sending partial shipments of an order C) instituting a policy of no discounts or promotions D) sending late deliveries of an order
C
Which of the following is NOT a stage in the New Service / Product Development Process? A) development B) design C) maintenance D) analysis
C
A systematic effort to reduce the cost or improve the performance of services or products is known as: A) presourcing. B) cooperative orientation. C) supplier certification. D) value analysis.
D
Suppliers can gain power from a number of sources in the buyer / supplier relationship. When a buyer can threaten to cancel future business unless the supplier adheres to the buyer's demands, this is called a ________ source of power. A) legal B) reward C) referent D) coercive
D
The practice whereby a manufacturer has inventories of materials on consignment from its suppliers falls under the scope of: A) inventory pooling control. B) virtual distribution. C) electronic inventory control. D) vendor-managed inventories.
D
Use the following to answer the questions below. The Steele Bike Company has completed a total cost analysis for two suppliers of bicycle frames to support their business. They also consider on-time speed, top quality and customization in their selection process. Each criterion is given a weight (total = 100 points), and each supplier is scored on each criterion (1 = poor, 10 = excellent). The data are shown in the following table. CRITERION WEIGHT ACME STATE Total Cost 15 8 4 On-Time Delivery 20 5 7 Top Quality 30 7 6 Customization 35 4 6 Refer to the instruction above. Using the preference matrix approach for selecting suppliers, what is State's total weighted score? A) 570 B) 100 C) 23 D) 590
D
What is the meaning of the acronym 3PL? A) three profit/loss periods B) three purchasing locations C) three partner leverage D) third party logistics provider
D
Which of the following is NOT a component of the supply chain? A) order fulfillment B) materials C) customer relationship D) competitors
D
Which of the following is NOT a lever in an integrated supply chain? A) collaborative activities by supply chain partners B) reduced replenishment lead times C) reduced order lot sizes D) elimination of product shortages and backorders
D
Which of the following is NOT an internal cause of supply chain disruptions? A) engineering changes B) batching of orders C) service or product promotions D) underfilled shipments
D
Which one of the following statements correctly represents a benefit of centralized buying? A) Local managers have more control over their business. B) Purchases and production schedules are meshed more easily. C) Customization to local preferences is simplified. D) Increased buying power can result in significant savings in purchasing costs.
D
Which one of the following statements is TRUE about a cooperative orientation in supplier relationships? A) It cannot be implemented in Western countries because competitive bidding is more effective in that culture. B) It cannot be implemented in the Western countries because it always benefits the supplier. C) It requires all parts and subassemblies to be purchased from the same supplier. D) It requires few suppliers for each item or service.
D
A catalog hub is a central distribution point where buyers may purchase items directly from manufacturers before the items are shipped to retailers.
FALSE
A common disruption of the external supply chain is engineering changes.
FALSE
A common disruption of the supply chain resulting from internal causes is demand volume changes.
FALSE
A cross-docking warehouse holds inventory from manufacturers until retailers are prepared to sell the items.
FALSE
Concurrent engineering is the term used to describe a firm's development of a new product after it has been discovered that a competitor is engineering a similar product for launch.
FALSE
Early supplier involvement is a program that allows suppliers to fill orders prior to the customer placing them.
FALSE
Production shifting is a form of low-cost hopping.
FALSE
Supply chain integration is the effective coordination of supply chain processes through the seamless flow of information to suppliers, but does not include customers, such as distributors and retailers.
FALSE
The SCOR model provides guidelines for how materials are to be delivered along a supply chain.
FALSE
The bullwhip effect says that in any supply chain, the ordering patterns experience increasing variance as you move closer to the end customer.
FALSE
The competitive orientation to supplier relations is that the buyer and supplier are partners.
FALSE
The ramp-up stage of the development process precedes the full launch stage.
FALSE
