Chapter 11- MGMT 330

Outsourcing:

All of these: transfers traditional internal activities to outside vendors, allows the outsourcing firm to focus on its key success factors, and utilizes the efficiency that comes with specialization

In what type of auction does a buyer initiate the process by submitting a description of the desired product or service? A) traditional B) buyer C) Dutch D) French E) Mexican

Dutch

Because the supply chain has become so electronic and automated, opportunities for unethical behavior have been greatly reduced. True or False?

False

Cross-sourcing describes the practice of having two suppliers provide every component. True or False?

False

In this age of increasing specialization, low communication cost, and fast transportation, companies are making more and buying less. True or False?

False

Keiretsu refers to a company coalition that is part collaboration, part purchasing from many suppliers, and part vertical integration. True or False?

False

Vertical integration, whether forward or backward, requires the firm to be more specialized. True or False?

False

Which of the following is NOT one of the five parts of the SCOR model?

Sell

A firm that employs a low-cost strategy should minimize inventory throughout the supply chain. True or False?

True

Channel assembly, which sends components and modules to be assembled by a distributor, treats these distributors as manufacturing partners. True or False?

True

In addition to establishing standards for themselves, responsible firms should establish ethical standards for their suppliers. True or False?

True

Operations managers are finding online auctions a fertile area for disposing of discontinued inventory. True or False?

True

The objective of the make-or-buy decision is to help identify the products and services that can be obtained externally. True or False?

True

Use of a diversified supply base represents one of the most common supply chain risk reduction tactics for several different supply chain risk categories. True or False?

True

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

airfreight

In supply chain management, ethical issues:

all of these are true: may be guided by company rules and codes of conduct, become more complex the more global is the supply chain, may be guided by the principles and standards of the Institute for Supply Management, and are particularly important because of the enormous opportunities for abuse

A fried chicken fast-food chain that acquired feed mills and poultry farms has performed a. horizontal integration b. forward integration c. backward integration d. current transformation e. job expansion

backward integration

What term describes a supply chain that is designed to optimize both forward and reverse flows?

closed-loop supply chain

Which of the following describes using one supplier for a component and a second supplier for another component, where each supplier acts as a backup for the other?

cross-sourcing

Which of the following does NOT contribute to distortions of information about what is really occurring in the supply chain?

drop shipping

Which of the following is NOT an advantage of the "few suppliers" sourcing strategy?

less vulnerable trade secrets

Which of the following best describes backward integration?

produce goods or services previously purchased

Which of the following statements does NOT accurately explain what occurs when the number of facilities in a distribution network increases?

response time first decreases, then increases

Which of the following is NOT a condition that favors the success of vertical integration?

small market share

Which of the following is NOT an advantage of a virtual company?

total control over every aspect of the organization