Final Exam Chapter 11

Characteristics of functional products include all of the following EXCEPT: A. frequent markdowns. B. low risk of obsolescence. C. low gross margin. D. numerous competitors.

A

Characteristics of innovative products include: A. frequent markdowns. B. low risk of obsolescence. C. low gross margin. D. numerous competitors.

A

Which of the following is an example of functional products? A. Toilet paper B. Designer handbags C. Fashionable clothing D. Luxury cars

A

A supply chain that involves suppliers of raw materials in Germany, manufacturers in China, distributors in Spain, and retailers in the United States has ______ different levels or stages. A. 5 B. 4 C. 3 D. 2

B

Which of the following is NOT a component of demand variability? A. Level B. Innovation C. Variety D. Location

B

A distribution center is also called a __________. A. tier 1 supplier B. tier 2 supplier C. fulfillment center D. finishing center

C

Supply chain partners can increase the variability in the supply chain in a number of ways EXCEPT: A. failure to deliver the quantity needed. B. failure to deliver the quality needed. C. failure to operate in an acceptable manner. D. failure to cooperate with competitors.

D

The cost related to having people manage various supply chain functions is called A. procurement. B. inventory. C. transportation. D. labor.

D

Which of the following is NOT a value that distributors provide in a supply chain? A. Faster delivery lead times to retailers B. Smaller order quantities C. Cost-effective storage of inventory D. Less product handling

D

T/F A supply chain with a distributor has more product handling than one without a distributor.

T

T/F Inventory availability is a service metric to evaluate the performance of a supply chain.

T

T/F Managers are much more prone to underinvest in flexibility when the product is innovative than to overinvest in flexibility when the product is functional.

T

Company A provides corn to Company B to make into corn syrup. Company B sells its corn syrup to Company C, who makes ice cream for sale at Company D. Company A is a ___________ in the supply chain of ice cream. A. tier 2 supplier B. tier 1 supplier C. manufacturer D. retailer

A

Compared to online retailers, traditional retailers tend to face: A. demand location uncertainty. B. demand level uncertainty. C. lower holding costs. D. higher shipping costs.

A

Lead time is the time between when an order is ________ and when it is __________. A. submitted, delivered B. submitted, canceled C. delivered, submitted D. returned, canceled

A

Store A orders on a weekly basis. Its weekly demand is 50 units with a standard deviation of five units. The holding cost is $10 per unit per week and a 0.99 in-stock probability is desired. What will be the effect on Store A's average on-hand inventory if lead time increases from two weeks to five weeks? A. It will increase. B. It will decrease. C. It will remain the same. D. Cannot be determined.

A

The four key costs associated with a supply chain include all of the following EXCEPT: A. lead time. B. transportation. C. labor. D. procurement.

A

Which of the following cannot mitigate sources of variability within the supply chain? A. Designing a product with proprietary components B. Working with suppliers who adopt industrywide standards C. Requiring suppliers to be financially sound D. Sharing customers and demand information with suppliers

A

_________ efficient supply chains are designed to __________. A. Physically, minimize costs B. Physically, maximize flexibility C. Market, minimize costs D. Market, maximize flexibility

A

Company A provides corn to Company B to make into corn syrup. Company B sells its corn syrup to Company C, who makes ice cream for sale at Company D. Company B is a ___________ in the supply chain of ice cream. A. tier 2 supplier B. tier 1 supplier C. manufacturer D. retailer

B

Make-to-order is a viable strategy when: A. customers are not willing to wait for the product. B. product variety is desirable. C. products are inexpensive to hold in inventory. D. product differentiation cannot be delayed.

B

Reasons for overseas sourcing include: A. Reducing inventory costs. B. Reducing labor costs. C. Reducing transportation costs. D. Reducing product value.

B

The bullwhip effect is the tendency for ______ to be more volatile at _______ levels of the supply chain. A. supply, higher B. demand, higher C. demand, lower D. supply, lower

B

Which of the following is NOT a reason for the bullwhip effect? A. Ordering a quantity that exceeds demand B. Ordering a quantity that exactly matches demand C. Stocking up with items on sale D. Ordering a quantity that is more than what is needed to meet future demand

B

________ decisions usually influence a firm?s performance in _______. A. Tactical, the next few years B. Tactical, the next few days C. Strategic, the next few days D. Strategic, the next few weeks

B

__________ is the cost of goods purchased from suppliers. A. Revenue B. Procurement C. Supply D. Negotiation

B

C&A, an American company, decides to make and sell its products in Australia. C&A is able to mitigate what kind of disruptions to its supply chain? A. Natural B. Political C. Economic D. Supplier

C

Characteristics of market-responsive supply chains include all of the following EXCEPT: A. flexibility is more important than cost. B. low factory utilization. C. functional products. D. fast and expensive mode of transportation.

C

Characteristics of physically efficient supply chains include: A. flexibility is more important than cost. B. low factory utilization. C. functional products. D. fast and expensive mode of transportation.

C

Company A provides corn to Company B to make into corn syrup. Company B sells its corn syrup to Company C, who makes ice cream for sale at Company D. Company C is a __________ in the supply chain of ice cream. A. retailer B. tier 1 supplier C. manufacturer D. distributor

C

Firm A adds jackets to its line of designer clothing. Which form of demand variability would be introduced by Firm A? A. Level B. Innovation C. Variety D. Location

C

Which of the following is NOT a means of transportation in the context of supply chain management? A. Railroad B. Truck C. Elevator D. Air

C

Which of the following is NOT a way to measure the availability of inventory? A. In-stock probability B. Stockout probability C. Flow rate D. Fill rate

C

Which of the following is a match between the type of supply chain and the type of product? A. Physically efficient, innovative B. Market responsive, functional C. Physically efficient, functional D. Market responsive, flexible

C

Which of the following is a strategic decision in the context of supply chain management? A. To decide how much inventory to order from a supplier B. To decide whether or not a shipment should be expedited C. To decide whether to outsource or not D. To decide employees? work schedule

C

Which of the following statements is TRUE regarding a supply chain of physical products? A. A supply chain must have five levels. B. A supply chain must involve global companies. C. A supply chain must start with raw materials. D. A supply chain must have distributors.

C

Which of the following statements is TRUE regarding tier 1 suppliers? A. Tier 1 suppliers are the starting point of a supply chain. B. Tier 1 suppliers are the primary suppliers to tier 2 suppliers. C. Tier 1 suppliers are the primary suppliers to manufacturers. D. Tier 1 suppliers are the primary suppliers to retailers.

C

With __________ operations, a product is made before the _______ of that product has been identified. A. make-to-order, demand B. make-to-stock, supply C. make-to-stock, demand D. make-to-order, supply

C

________ products are relatively ________ because they can experience substantial variability. A. Functional, safe B. Functional, risky C. Innovative, risky D. Innovative, safe

C

A supermarket is typically at the ________ level of a supply chain. A. supplier B. manufacturer C. distributor D. retailer

D

A supply chain for goods and services consists of a __________ of firms and locations that begins with __________ and ends with _________. A. merging, public entities, private entities B. merging, private entities, public entities C. network, final users, raw materials D. network, raw materials, final users

D

Company A provides corn to Company B to make into corn syrup. Company B sells its corn syrup to Company C, who makes ice cream for sale at Company D. Company D is a ___________ in the supply chain of ice cream. A. tier 2 supplier B. tier 1 supplier C. manufacturer D. retailer

D

The bullwhip effect can cause the variability in _____________ to be substantially greater than variability in ______________. A. demand within the supply chain, supplier demand B. supplier demand, demand within the supply chain C. consumer demand, demand within the supply chain D. demand within the supply chain, consumer demand

D

Which of the following is NOT a factor that influences the realized lead time for an order? A. Size of the distribution center B. Mode of transportation C. Availability of inventory D. Operational capabilities of the receiver

D

Which of the following is a tactical decision in the context of supply chain management? A. To decide whether to produce locally or not B. To decide whether to make or buy C. To decide whether to expand capacity or not D. To decide whether to use overtime this week or not

D

Which of the following is an advantage of a supply chain without a distributor? A. Faster delivery lead times to retailers B. Smaller order quantities C. Cost-effective storage of inventory D. Less product handling

D

Which of the following is not a supply chain strategy that we discussed in this chapter? A. Online retailing B. Make-to-order C. Overseas sourcing D. Innovation

D

Which of the following statements about supply chain decisions is TRUE? A. Tactical decisions are not as important as strategic decisions. B. Strategic decisions change frequently to achieve the right level of flexibility to counteract the amount of variability in a supply chain. C. All supply chains face the same amount of variability. D. Supply chain decisions are about selecting the right level of flexibility to counteract the amount of variability in a supply chain.

D

T/F Lead time is a way to measure the availability of inventory.

F

T/F Tier 2 suppliers are primary suppliers to manufacturers.

F

T/F Online retailing is a supply chain strategy that attempts to increase profit by reducing variability and increasing flexibility associated with product variety.

T