Supply Chain 1-4

42- The Mini-Mart in Oxford Ohio holds monthly sales of slower moving goods to make room for incoming products. This is

A symptom of poor inventory management

35- Which of the following is not a symptom of poor inventory management?

Ability to find items in a timely manner.

5- At various times, congestion in West Coast ports in the US can cause problems. Firms can respond to those delays in many ways. Limited Brands has adopted strategies to lessen the adverse impacts of those delays. Which of the following is not an example of their supply chain disruption strategy?

All are examples persued by limited brands. (Developed partnerships with carriers to handle freight movements from variety of port locations, shifting freight to Seattle and Tacoma away from S. California, Developed intermodal options for moving freight to inland locations.

39- Sales Force estimates draw forecasting from the expert judgement of salespersons. Why would a firm choose this forecasting method?

All of the options are valid- (Accuracy may depend on a few large orders, salesforce is closest to customers and can detect changes in market place and can anticipate customer needs)

44- What is Inventory Carrying Cost?

All of these options are components of Inventory Carrying Costs (Risk of obsolescence. the cost of the capital tied up in the inventory, Risk of damage, shrinkage, and relocation, Storage and insurance expenses

19- In the collaborative planning, forecasting and replenishment(CPFR) process, which of the following would be part of the planning component?

All of these options focus on key execution items and time-based decision making would be part of the planning component of CPFR.

10- In the area of disaster preparedness and relief, one specific logistics and supply chain organization was formed to provide post-disaster humanitarian aid. The organization that was created was

American Logistics Aid Network.

16- Customer satisfaction is viewed by supply chain executives as

An activity or process that must be managed, a corporate philosophy that treats customer satisfaction as an integral part of a firms total supply chain policies and performance measures.

27- Lily Lettuce wants to track each individual head of lettuce from farm to retailer. What is the best tool?

Bar Codes

30- Manufacturers and retailers benefit from the use of bar codes for several reasons. Which of the following is one of these reasons?

Can facilitate the process to determine which items are selling quickly and which are not.

45- Commonly used qualitative forecasting methods include

Consensus panel, the Delphi method, and sales force estimates

8- The approach implemented by Proctor and Gamble that determines ordering patterns in the consumer goods industry based on distribution center withdrawals and sales data is referred to as

Continual Replenishment.

15- AMR research developed a list of 17 of the most important key performance indicators(KPI's), but specifically identified three of them as being universally important in all types of supply chains. Which of the following are the three most important KPI;s identified?

Demand Forecast accuracy, perfect order fulfillment and supply chain management cost.

6- Supply Chain Executives must be "boundary spanners." Which of the following skills would be of most importance to the supply chain executive?

Developing and forging partnerships with individuals and organizations within the supply chain.

2- Which of the following philosophies or orientations has had the least impact on the planning, implementation and control of supply chain management activities?

Economic Order Quantity(EOQ)

25- All types of organizations can benefit from the use of a warehouse management system (WMS). However, WMS are best suited to which of the following?

Firms with large warehousing operations because of the cost to acquire and implement a WMS.

1- In Supply Chain Management, terrorism, weapons of mass destruction and middle east instability would be examples of

Geopolitical Risk.

14- Which of the following is not a major component of the balanced scorecard approach to performance measurement?

Governance and regulatory issues.

38- Which of the following situations is an example of a reason to hold/ increase inventory?

Great Greetings builds up their inventory of red-envelope weight paper anticipating the valentines spike in orders.

36- Which of the following is not an important reason to forecast sales?

Improve Warranty Service Levels.

43- In form postponement, which of the following in incorrect?

In manufacturing postponement, all of the components are shipped at the same time

4- Generally logistics costs in the United States have

Increased during the first several years of the new millennium, but decreased during the recession of 2008-2009 and thereafter.

29- Supply chain managers need information for three main purposes. Which of the following is not one of these purposes?

Maintain Asset Visibility.

18- Scheduling production activities, issuing the product, producing and testing, package and releasing the product to be delivered would occur in the

Make component of the SCOR Model.

3- All of the following functions or activities would be part of supply chain management except

Market Research.

32- Which of the three forecast error measures described in the text is simply a measure of the average error for all time periods considered?

Mean Absolute Deviation (MAD)

11- When collecting data or information to make supply chain decisions, the best type of data to collect would be

Nominal.

23- Which of the following tools is a visual representation of an order management process?

Process Map

12- Which of the following is not one of the elements of the marketing mix?

Production

13- While customers and products can ne prioritized in many ways in "customer product action matrix", the most common approach is to use

Profitability of customers and/ or products purchased by customers.

20- Which of the following is not one of the dimensions or components of the SCOR model?

Research

31- Which of the following forecasting methods includes both quantitative and qualitative tools?

Sales & Operations Planning.

48- How did Sony Electronics achieve a 40% increase in sales forecast accuracy?

Sony used both its Sales & Operations Planning plan along with its Collaborative Planning, Forecasting, & Replenishment process to increase forecast accuracy.

9- According to American Institute of Food Distribution,

Thanksgiving is the holiday when Americans consume the most food in a single day.

33- If annual demand is 24,000 units and the order quantity is 3000 units, then which of the following is true?

The annual number of order placements will be 8, and average inventory levels will be 1,500.

34- Firms often consolidate shipments to save transportation costs, which result in higher inventory because inventory needs to accumulate before shipment. What is the goal of firms that do this?

Transportation economies of scale.

49- Supply Chain Management attempts to minimize costs and optimize customer satisfaction

True

28- A leading retailer is developing its supply chain strategy, as a result, will consider three main issues. Which is not one of the issues?

Which social media outlets are most critical for consideration.

17- Collaborative planning, forecasting and replenishment (CPFR)

is a business practice that improves accuracy by combining the intelligence of multiple trading partners participates in the planning and fulfillment of customer demand.

24- Ansi

is a nonprofit organization overseeing the creation promulgation and use norms and guidelines that directly impact businesses.

41- For a given product, the order placement cost is $5, the holding cost per unit per year is $10, and annual demand is 1,600 units. If the EOQ is used, total annual logistics costs will amount to which of the following?

$400

47- Which of the following statements is true concerning Sales & Operations Planning

(S&OP) A. It is an integrative process used to develop more accurate forecasts. B. The Operations and Sales teams bear the primary burden of meeting targets C. Uses both qualitative and quantitative tools D. Uses a formal S&OP team to develop the final plan E. All of these options are true

37- What is your economic order quantity if your annual demand is 100 units, the order placement cost is $25 and the holding cost per year is $50?

10 units

7- Technological developments in supply chain management have had significant impacts. The development can be either informational/ analytical of physical. Which of the following would be considered a physical example of technology development?

3-D Printing

21- Define order cycle time

The time period between a customer placing an order and its delivery