Chapter 11 T/F
A reduction in inventory costs is one reason for making rather than buying.
False
Because service firms do not acquire goods and services externally, their supply chain management issues are insignificant
False
Because the supply chain has become so electronic and automated, opportunities for unethical behavior have been greatly reduced.
False
Developing long-term, "partnering" relationships with a few suppliers is a long-standing American purchasing strategy.
False
Even though a firm may have a low cost strategy, supply chain strategy can select suppliers primarily on response or differentiation
False
If the purchasing firm and the supplying firm have compatible corporate cultures, substantial efficiencies related to the use of independent specialists, each with their objectives, will be lost
False
Improvements in security, especially regarding the millions of shipping containers that enter the U.S. each year, are being held back by the lack of technological advances.
False
In the vendor evaluation phase, most companies will use the same list of criteria and the same criteria weights.
False
McDonald's was able to utilize existing plants and transportation systems in preparing the supply chain for opening its stores in Moscow.
False
Outsourcing refers to transferring a firm's activities that have traditionally been internal to outside vendors in other countries.
False
Supply chain decisions are not generally strategic in nature, because purchasing is an ordinary expense to most firms.
False
The key to effective supply chain management is to get many suppliers to compete with each other, in order to drive down prices.
False
The supply chain for a brewery would include raw ingredients such as hops and barley but not the manufactured goods such as bottles and cans
False
The supply chain management opportunity called postponement involves delaying deliveries to avoid accumulation of inventory at the customer's site.
False
Vertical integration, whether forward or backward, requires the firm to become more specialized.
False
Volkswagen's Rio de Janeiro plant is an excellent example of traditional supply chain management.
False
Waterways are an attractive distribution system when speed is more important than shipping cost. False (Logistics management, moderate)
False
When using the low-cost strategy for supply chain management, the firm should invest aggressively to reduce production lead time.
False
With the growth of just-in-time practices, railroads have made large gains in the share of the nation's transport that they haul.
False
With the many-suppliers strategy, the order usually goes to the supplier that offers the best quality.
False
A fast-food retailer that acquired a spice manufacturer would be practicing backward integration.
True
Benchmark firms have driven down costs of supply chain performance.
True
Blanket orders are a long-term purchase commitment to a supplier for items that are to be delivered against short-term releases to ship.
True
Channel assembly, which sends components and modules to be assembled by a distributor, treats these distributors as manufacturing partners.
True
Drop shipping results in time and shipping cost savings
True
Keiretsus offer a middle ground between few suppliers and vertical integration.
True
Logistics management can provide a competitive advantage through improved customer service
True
One classic type of negotiation strategy is the market-based price model.
True
Outsourcing is a form of specialization that allows the outsourcing firm to focus on its critical success factors.
True
Savings in the supply chain exert more leverage as the firm has a lower net profit margin
True
Supply chain management faces additional challenges, such as those related to quality production and distribution systems, when companies enter growing global markets.
True
The bullwhip effect refers to the increasing fluctuations in orders that often occur as orders move through the supply chain.
True
The objective of the make-or-buy decision is to help identify the products and services that can be obtained externally.
True
Vendor Managed Inventory is a form of outsourcing.
True
nternet purchasing may be part of an integrated enterprise resource planning (ERP) system
True
