Supply Chain Management

What type of negotiation strategy requires the supplier to open its books to the purchasers?

Cost-based price model

Which one of the following performance measures is not true of a world class firm?

Long lead time

Which of the following supply-chain strategies creates value by allowing suppliers to have economies of scale?

Long-term partnering with a few suppliers

Which of the following is not a concern of the supply chain?

Maintenance scheduling

Which of the following is an aspect of environmental risk in supply-chain management?

Political issues

With the growth of the JIT, which of the following distribution systems has been the biggest loser?

Railroads

Which of the following is not an advantage of the "few suppliers" concept?

Sharing trade secrets between firms

Which one of the following is not a supply-chain strategy?

Short-term relationship with few suppliers

A restaurant runs a special promotion on lobster and plans to sell twice as many lobsters as usual. When this large order is sent to the distributer, the distributer assumes the large size is a trend, not a one-time event. The distributer, therefore, places an even larger order with the lobsterman. This is the result of __________.

The bullwhip effect

What term is used to describe the outsourcing of logistics?

Third-Party Logistics

Which of the following best describes vertical integration?

To produce goods or services previously purchased

Consider a firm with a 2013 net income of $20 million, revenue of $60 million, and cost of goods sold of $25 million. If the balance sheet amounts show $2 million of inventory and $500,000 of property, plant, and equipment, how many weeks of supply does the firm hold?

Weeks of supply = inventory investment/average weekly cost of goods sold ANSWER: 4.16 weeks

The three classic types of negotiation strategies are __________.

cost-based price model, market-based price model, and competitive bidding

A furniture maker has delivered a dining set to the end consumer rather than to the furniture store. The furniture maker is practicing __________.

drop shipping

The trucking industry is establishing Web sites, which let shippers and truckers find each other in order to ________.

improve logistics efficiency

The purchasing approach that holds the suppliers responsible for maintaining the necessary technology, expertise, and forecasting ability plus cost, quality, and delivery competencies is __________.

many suppliers

Local optimization is a supply-chain complication best described as __________.

optimizing one's local area without full knowledge of the organizational need

The transfer of some of what are traditional internal activities and resources of a firm to outside vendors is __________.

outsourcing

Keeping a product generic as long as possible before customizing is known as __________.

postponement

A disadvantage of the "few suppliers" strategy is __________.

the high cost of changing partners

The three stages of vendor selection, in order, are __________.

vendor evaluation, vendor development, and negotiations

The three major variations of online catalogs are grouped by __________.

vendors, intermediaries, and buyer exchange systems

Which one of the following distribution systems offers quickness and reliability when emergency supplies are needed overseas?

Airfreight

Which of the following is an opportunity for effective management in the supply chain?

Channel assembly