International Supply Chain Management Test 3
Which of the following is a useful location analysis technique when fixed and variable costs can be determined for each potential location?
Break-even model
Which of the following is a critical issue in sustainable development?
Global consumption of fossil fuels
Given the following information, calculate the labor productivity growth rate from period 1 to period 2:Units produced in period 1 = 1,800 units, using 200 labor hoursUnits produced in period 2 = 1,840 units, using 220 labor hours
-7.07%
Using the following information, calculate the total productivity:Output = 25,000 units; 400 labor hours @ $15.00 per hourMaterial cost = $625,000; Utilities cost = $1,400
0.0395 units/$
A company produces 300 bicycles every day. Each bicycle is worth $250. The inputs used to make those bicycles are labor, materials, and machine costs. The company pays their employees a total of $10,000 per day, the materials to make each bicycle cost $50, and the cost to operate the machines is $3000 per day. Based only on the data provided, what is this company's total productivity for one day?
2.68
For the following layout, determine the total feet traveled per day.
2525 ft.
For the following layout, determine the closeness desirability rating. The desirability scale is from (-1=undesirable) to (3=very important).
7
Most performance measures used by firms today:
Are traditional cost-based and financial statistics.
Which of the following was designed in 1992 by Kaplan and Norton as a way to align a firm's performance measures with its strategic plans and goals?
Balanced scorecard approach
Establishing standards for performance comparison purposes:
Can be troublesome, particularly when the standards are unrealistic.
Which of the following is focused on promoting the sharing of environmental responsibility along the supply chain?
GSCM
Good performance measurement systems:
Help to eliminate non-value creating activities.
Which of the following is a project that has environmental implications concerning public health and climate change?
Keystone XL pipeline
Which of the following is an example of a pure service?
Law firm
Which of the following is a source of product and process innovation and competitive advantage for the entire organization, since it translates its knowledge of the market, competitors, and customers into new products?
Lead factory
The two most basic strategies for managing capacity are:
Level Demand strategy and chase demand strategy
Four factors have been identified by a company for a location determination. The factors (and weights) are shown here, along with the two potential locations and their scores. Which location is preferred and what is the location's score?
Location A -- 85
Which of the following is an example of a factor endowment cluster?
Napa Valley vineyards
Which of the following would be considered a good starting point for building a green supply chain strategy among supply chain partners?
Obtaining ISO 14000 certifications
Which of the following imports or locally acquires parts and then exports all of the finished products, with the primary objective of taking advantage of low labor costs?
Offshore factory
To improve external process integration, which technology can be used to provide real-time information visibility along the supply chain?
RFID
David Maister's First Rule of Service is:
Satisfaction = perception − expectation
Which of the following is NOT one of the specific measures listed in the text that must be adopted by supply chain trading partners such that performance can be further aligned with supply chain objectives?
Supply Chain Marketing Performance
Which of the following supply chain performance metrics measures the average percentage of orders among supply chain members that arrive on time, complete, and damage-free?
Supply chain perfect order fulfillment performance
Which country was dubbed the "Silicon Island" by Forbes?
Taiwan
Which of the following is an economic and political agreement among Argentina, Brazil, Paraguay, Uruguay, and Venezuela, and was formed in March 1991 with the signing of the Treaty of Asuncion?
The Southern Common Market
Which of the following is the only global international organization dealing with the rules of trade between nations, and ensures that trade flows as smoothly, predictably and freely as possible?
The World Trade Organization
Use the breakeven model to determine which of the statements below is TRUE according to the information provided in the table relating to two different location considered for a new manufacturing facility.
The breakeven point for these two locations is 625 units per years.
Eatertainment is:
The combination of restaurant and entertainment elements
Which of the following is NOT a characteristic of supply chain performance measurement systems?
Their goal is to achieve cost minimization for each supply chain member
When capacity exceeds demand, demand management techniques can be used to stimulate demand using all of the following EXCEPT:
Use of effective queuing configurations
The world's largest green supply chain management initiative is being implemented by:
Walmart
Which facility location technique assigns weights to each location factor according to its relative importance?
Weighted-factor model
Facility location has ____________on the supply chain.
a long-term impact
Examples of regional trade agreements include all of the following EXCEPT:
association of indian markets (AIM)
Once the supply chain partner requirements are understood, supply chain members can then:
audit their capabilities to see if they are consistent with the needs of the end customers
Security activities such as; Use of security badges and guards, conducting background check on applicants and using antivirus software and passwords, would be classified as:
basic initiatives
The manufacturing flow management process is responsible for:
both "making the actual product" and "designing the production system to meet cycle-time requirements"
Interconnected companies and institutions from a particular field which are located in a single geographic location, are referred to is a(n):
business cluster
Milan, Wall Street, and Detroit are examples of ____________.
business clusters
Which of the following is a critical issue in sustainable development?
climate change
Having connectivity and visibility to all partners in a firm's supply chain can be accomplished through the use of:
cloud-based communication systems
One of the biggest issues facing franchising is:
control problems
Traditional performance measures include:
cost and revenue
A customer approaches a firm with a question regarding her order status and shipping date; the information the firm provides is an example of which of the eight key supply chain business processes:
customer service management process
Supply relationship management personnel routinely communicate with: a. production personnel to obtain feedback on supplier and purchased item performance b. suppliers for new product development and performance feedback c. marketing personnel for customer feedback d. all of the above
d
Which of the following is a problem with a company establishing labor and machine utilization standards for performance? a. encourages the firm to reduce labor levels until everyone is overworked b. there is a tendency to continue producing and adding to inventory just to keep machines and people busy c. less time is spent doing preventive maintenance, training, and projects that can lead to greater performance d. all of the above
d
Which of the following is a problem with a company establishing standards for performance? For example: production rates of 10 units per hour. a. employees and managers may falsify production records b. once performance goals are reached, incentives to improve may disappear c. employees are driven to work so fast they can make defects d. all of the above
d
Which of the following is a vital element in developing a strong supply chain through the practice of process integration? a. partner collaborations on methods to improve processes within the supply chain b. developing and implementing a strong information technology system that allows for fast and easy information exhanges between supply chain partners c. partnerships, which value information sharing and partner collaborations d. all of the above
d
Which of the following issues is (are) important to consider when trying to determine the location of a firm's facilities? a. environmental issues regulated by domestic laws or international trade agreements b. the stability in the location considered c. access to suppliers from the location considered d. all of the above
d
Which of the following would be considered a Supply Chain Risk Management activity? a. diversify the supply base b. increasing safety stock c. develop a formal risk management program d. all of the above
d
World-class performance measures can be used in different functional areas of a firm to satisfy objectives, enhance the value of the firm's products and services, and increase customer satisfaction by providing measures in which of the following capability area(s)? a. cost b. customer service c. quality d. all of the above
d
According to the text, the development of cleaner, more fuel-efficient affordable energy technologies and renewable energy technologies will:
decrease the costs in the supply chain
Nowadays, successful supply chains are those that in the face of ever changing customer needs can continue to:
deliver the right combination of cost, quality, and customer service
Building, maintaining and strengthening beneficial relationships with suppliers and customers is accomplished through the use of:
external process integration
A firm is comparing two potential service layouts using the Closeness Desirability Rating. Option 1's closeness desirability score is 18. Option 2's closeness desirability score is 22. It can be concluded that Option 1 layout is better.
false
The Balanced Scorecard framework consists of four perspectives: financial perspective, human resources perspective, inventory perspective, and the logistics perspective.
false
The development of functional silos within an organization is considered a key component to achieving successful supply chain process integration.
false
A firm wanting to import items duty free and then use the component for local production of a product that is then exported would most likely utilize a(n):
foreign trade zone
Which of the following is a contributor to the bullwhip effect?
forward buying
The difference between customer expectations and customer perceptions of what was actually received during the service encounter is referred to as service quality ________.
gaps
The global process integration software market is expected to:
grow by about $100 billion from 2017 to 2021
Mapping the network of primary trading partners is something that should be done to:
help the firm decide which businesses to include in its supply chain management efforts
The first step in the weighted-factor rating technique is to:
identify all factors considered important to the facility location decision
Which of the following is NOT a step in creating an effective performance measurement system?
identify costs, revenues, labor hours, and capacities used each period
A company produces 750 bicycles in one week. The labor used to make the bicycles was 400 hours. The next week, output was 710 bicycles using 360 hours. What was the change in labor productivity?
increased by 5.2%
____________________ tends to reduce safety stocks among supply chain members, generating even less variability in supply chain orders?
information visibility
Which of the following BSC framework perspectives deals with new product development, innovative elements of processes, and time-based measures?
internal business process
Which one of the following is NOT a waiting time management technique?
keep the line moving
According to the text, all of the following are considered key supply chain business processes EXCEPT:
knowledge management process
Which obstacle to supply chain integration concerns itself with product safety standards, trade agreements, and security requirements, and making information available for importers, shippers, and logistics providers?
lack of supply chain visibility
An unwillingness to share information out of fear of being taken advantage of- is associated with which of the following obstacles to process integration?
lack of trust
A basic strategy for managing capacity is:
level demand strategy
Dominant companies within a supply chain can use their buying power to:
leverage demands for supplier conformance to its supply chain requirements
Identifying backup suppliers and logistics services is an activity which is used for:
managing supply chain risk
According to the SCOR model, which of the following is NOT one of the five supply chain operation process categories?
market
When salespeople need to fill end-of-quarter or end-of-year sales quotas they might use ___________, which creates greater use of safety stock causing the bullwhip effect.
order batching
Which of the following strategic foreign facilities is set up in a location with an abundance of advanced suppliers, competitors, research facilities, and knowledge centers to get access to the most current information on materials, components, technologies, and products?
outpost factory
Which of the following would be considered a way to measure Supply Chain Environmental Performance?
percentage of partners that have created a director of environmental sustainability position in their company
Companies typically like to design scorecards that fit their business and industry. As a result there are now software applications that can help companies design scorecards that fit their individual needs. These web-based balanced scorecard applications are often referred to as:
performance dashboards
Companies typically like to design scorecards that fit their business and industry. As a result, there are software applications that can help companies design scorecards that link via the web to a firm's enterprise software system. These web-based balanced scorecard applications are often referred to as:
performance dashboards
Which of the following gives firms the capability to track the progress toward meeting each of the objectives for the key processes?
performance measures
When utilizing performance standards, the difference between the standard and the actual performance is called a:
performance variance
When utilizing performance standards, the difference between the standard and the actual performance is called the:
performance variance
Creating an executive-level position such as director of corporate security is an example of what type of security system response initiative?
proactive
Which of the following has made external integration more difficult to achieve?
problems with internal integration efforts
Sharing information, collaborating, and coordinating resources to jointly manage a process is referred to as _______.
process integration
The coordination and sharing of information and resources to jointly manage a process is referred to as:
process integration
Which key supply chain business process is responsible for getting new products to market efficiently and integrating suppliers and customers into the process to reduce time to market?
product development and commercialization
Which of the following is NOT one of the SCOR model's five categories of performance attributes?
profitability
Cost-based performance measures _____ reflect the underlying performance of the productive systems of an organization.
rarely
All of the following are included in the five dimensions of service quality EXCEPT:
reasonability
Which of the following is NOT one of the four perspectives of the BSC framework?
reliability
A customer who enters the waiting line but leaves the system prior to receiving service is said to have:
reneged
Substance disposal and recycling are part of which supply chain business process:
returns management
Which of the following secures the right of employees to decide whether to join or financially support a union?
right-to-work laws
One of the SCM Profiles shows how Land O' Lakes and General Mills collaborated to:
save shipping costs
According to the SCOR model, which of the following is NOT one of the supply chain operations process categories?
sell
According to the text, which of the following would be an example of Coca-Cola's international bottling plants, each serving a small geographic region?
server factory
The four primary activities of concern in service response logistics are the management of:
service capacity, waiting times, distribution channels and service quality
As capacity utilization approaches 1.0, which of the following tends to happen?
services become more congested
Which of the following is a difference between goods and services?
services cannot be inventoried
Customers bought mass quantities of Twinkies in reaction to Hostess Brands entering Chapter 7 liquidation. Suppliers used a strategy known as ____________ which exacerbated the supply problem.
shortage gaming
Influencing and increasing the capabilities of a firms own employees, as well as those of their trading partners, will help to eliminate which of the following obstacles to process integration?
shortage gaming
Failing to see the big picture and acting only in regard to single firm in the supply chain can be referred to as:
silo mentality
Failing to see the big picture is associated with which of the obstacles to process integration?
silo mentality
Which of the following is NOT a reason for locating in a business cluster?
sophisticated retailers
Which of the following supply chain performance metrics measures the average percentage of orders that are filled on or before the requested delivery date?
supply chain delivery performance
Order batching amplifies demand variability which creates greater use of safety stock and causes:
the bullwhip effect
Which of the following is NOT considered a quality-of-life factor in a location decision?
the cost of labor
Which of the following issues is NOT one of the three levels of location decisions?
the environmental issues selection
Which of the following is NOT a problem with using cost, revenues or profits as performance measures?
they are difficult to compare with other firms
Which of the following is most associated with world class performance measurement systems?
they link firm strategies and operating decisions to customer requirements
High tariffs encourage multinational corporations to set up factories to produce locally.
true
The European Union (EU) is considered a regional trade agreement.
true
Web-based balanced scorecard applications are sometimes referred to as performance dashboards.
true
When demand exceeds a supplier's finished goods available, a supplier may allocate product in proportion to what buyers ordered. This rationing often results in shortage gaming by the suppliers' customers.
true
Approximately how many performance measures does the BSC recommend?
two dozen
Which of the following would NOT be considered an acceptable option in managing capacity when demand exceeds available service capacity?
utilizing fewer facilitating products
In well-managed supply chains, performance measurement systems become much larger and are complicated by:
varied relationships, trust and interactions
In 2015, outputs were 12,000 units with inputs of 1,000 labor hours. In 2016, outputs were 13,500 units with 1,200 labor hours. What was the productivity growth from 2015 to 2016?
-6.25%
If the average service rate is 10 minutes per customer, and assuming the negative exponential distribution is used to describe the randomness of the service time distributions, then determine the probability that the service time will be less than or equal to 8 minutes.
0.55
If the average service rate is 12 minutes per customer, and assuming the negative exponential distribution is used to describe the randomness of the service time distribution, then determine the probability that the service time will be less than or equal to 10 minutes.
0.565
Assuming the number of arrivals per time period is Poisson distributed with a mean arrival rate of 3 customers per hour, determine the mean interarrival time.
20 minutes
In a 1 server model, if the average arrival rate = 3 customers per hour and the average service rate = 4 customers per hour, determine the average number of customers in the system.
3 customers
Location A has a fixed cost of $280,000 and a variable cost of $22 per unit. Location B has a fixed cost of $400,000 and a variable cost of $19 per unit. What is the break-even quantity?
40,000 units
What is Additive Manufacturing?
A process of making a three-dimensional solid object from a digital model.
Which of the following explains the difference between green development and sustainable development?
Green development prioritizes environment over economic and cultural considerations
Service distribution channels refer to:
How a service delivers its goods and services to customers
Which of the following is one of Maister's Laws of Service?
It's hard to turn things around if a customer becomes dissatisfied
Which of the following is NOT a primary activity of concern in service response logistics?
Management of inventory
When customers arrive at a service in a random pattern, the ____________________ is used to describe the arrivals.
Poisson distribution
If your company needs to find an appropriate location for a factory in order to take advantage of government incentives and avoid tariff barriers, while supplying a regional market, the type of factory needed is referred to as a(n):
Server factory
The number of customers per day an organization's service delivery systems are designed to serve within a certain time frame is referred to as:
Service Capacity
The goal of an efficient queuing system is that customers never have to wait in a queue.
false
Benefits achieved when information systems create information visibility along the supply chain include:
fewer data transfer errors
The global process integration software market is expected to _________ from 2017 to 2021.
grow
Which of the following is NOT a technique for managing customers' perceived waiting times:
hiding the wait time
Collaboration and information sharing in a supply chain can lead to all of the following benefits EXCEPT this:
increased time to market
Forming cross-functional teams to develop the key process objectives and accompanying performance measures is an example of:
internal process integration
Service provided by multiple servers acting in parallel is referred to as:
multiple-channel queuing system
A certain organization trying to decide where to locate their future factory is considering three locations. They are taking into account three factors: labor costs, currency stability, and proximity to market. Using the weights for each factor listed below and the scores achieved by each of the three considered locations, determine which location should be chosen for the new facility based on the weighted factory location model.
not site c
Which of the key supply chain business processes include activities like substance disposal and recycling, designing effective reverse logistics processes and warranty repairs?
returns management
Interruptions in the supply of goods and services in a supply chain caused by an internal or external event that disrupts supply chain operations, causing potential reductions in service levels, product quality, and sales are referred to as:
supply chain risks
Which of the following refers to development that meets the needs of the present without compromising the ability of future generations to meet their own needs?
sustainable development
________________ is important because what we do today will affect future generations.
sustainable development
Which of the following is a tax imposed by the government on imported goods to protect local industries, support the country's balance of payments, or raise revenue?
tariff
The World Trade Organization (WTO) is critical to the facility location decision process because of their impact on:
tariffs
The average transaction at a single channel, single phase automatic teller can be completed in 7.5 minutes and customers arrive at the average rate of one every ten minutes. On average, what is the server utilization? (Choose the closest answer.)
0.75
The average transaction at an automatic teller can be completed in six minutes and customers arrive at the average rate of one every ten minutes. On average, how many customers are there in the queue?
0.900 customers
Assuming the number of arrivals per hour is Poisson distributed at a service, with a mean arrival rate of 6 customers per hour, what is the probability that more than 1 customer per hour will arrive?
0.983
Calculate the score for the layout below. Do not count the departments with just corners touching. The desirability ratings are based on a (-1 to 3) scale, where -1=undesirable, 0=unimportant, 1=slightly important, 2=moderately important and 3=very important.Existing Office Layout
11
Baumol's Disease is best described by which of the following?
As economies become more service-oriented, then productivity growth declines
What is the term used for geographic concentrations of interconnected companies and institutions in a particular field?
Business cluster
In services, quality is most closely tied to:
customer satisfaction
Regional trade agreements assist with which of the following? a. monitor national trade policies b. handle trade disputes c. provide technical assistance for developing countries d. all of the above
d
Which of the following is a benefit from using cloud based communication systems? a. systems can be up and running in a short amount of time b. ensure faster time to market c. faster response to changing market dynamics and demands d. all of the above
d
Which of the following is an example of a person that would be considered to provide a Pure Service? a. management consultant b. musical entertainer c. attorney/lawyer d. all of the above
d
All of the following are considerations used in designing service layouts EXCEPT:
ease of access to parking lot
All of the following are included in the five dimensions of service quality EXCEPT:
expectations
