Quiz 7 Week 7 Chapter 13 and 14

Which of the following is an organizationally-driven reason for outsourcing?

Improve effectiveness by focusing on what the firm does best See exhibit 13.5.

The centroid method for plant location uses which of the following data?

Volume of goods to be shipped between existing points

In outsourcing which of the following internal activities and decision responsibilities can not be transferred to outside contractors?

Activities involving shareholders Outsourcing goes beyond the more common purchasing and consulting contracts because not only are the activities transferred, but resources that make the activities occur, including people, facilities, equipment, technology, and other assets, are also transferred.

A company wants to determine where they should locate a new warehouse. They have two existing production plants (i.e., Plant A and Plant B) that will ship units of a product to this warehouse. Plant A is located at the (X, Y) coordinates of (50, 100) and will have volume of shipping of 250 units a day. Plant B is located at the (X, Y) coordinates of (150, 200) and will have a volume of shipping of 150 units a day. Using the centroid method, which of the following are the X and Y coordinates for the new plant location?

(88, 138) Using equation 14.1: X = (100x500 + 150x200)/(250 + 150) = 87.5 and Y = (100x250 + 200x150)/(250 + 150) = 137.5

The inventory turnover ratio used in measuring supply-chain efficiency is found by the ratio of which of the following?

Cost of goods sold/Average aggregate inventory value Inventory turnover = Cost of goods sold/Average aggregate inventory value

In Hau Lee's uncertainty framework to classify supply chains, a supply chain for functional products with an evolving supply process is called which of the following?

Risk hedging See exhibit 13.4

Ford Motor Company is using procurement strategy to:

Shorten their supply chains Ford is using their procurement strategy to shorten their supply chains and to provide JIT shipments to their assembly plant.

Suppliers to Ford's Chicago Assembly Plant who are located in the supplier campus, generally ship parts based on:

System integration with the Ford assembly line They are integrated with the assembly line and deliver parts JIT based upon the assembly line needs. Some parts are assembled at Ford within a short time after they were produced on the supplier campus

Services typically have multiple site locations to maintain close contact with customers.

TRUE Services typically have multiple sites to maintain close contact with customers.

The Association for Operations Management defines logistics as "the art and science of obtaining, producing, and distributing material and product in the proper place and in proper quantities."

TRUE The Association for Operations Management defines logistics as "the art and science of obtaining, producing, and distributing material and product in the proper place and in proper quantities."