SUPPLY CHAIN FINAL
Which is an innovative example of postponement?
3D-printing
What percentage of total GDP does transportation account for?
9%
Which of the following is FALSE?
A cloud based warehouse management system is less flexible than owning and hosting a server.
What is MRP?
A production planning, scheduling, and inventory control system mainly used to manage manufacturing processes
Which is the most important output of a WMS?
Accurate inventory information
Which capability is even more important when doing business globally?
Agility
Which of the following is TRUE? a) Some transportation management systems help in auditing the freight bills. b) There are cloud-based transportation management systems available nowadays. c) Transportation management systems generally can improve on mode selection.
All of the above are TRUE.
Which of the following is TRUE? It is not necessary to have all component parts on hand before commencing a manufacturing process for an assembly. A production planning, scheduling, and inventory control system mainly used to manage manufacturing processes is called MRP. A "bill-of-materials explosion" refers to breaking apart each assembly or sub-assembly into its component parts.
All of the above are true.
ERP systems may include what kinds of capabilities? a) Order management b) Inventory c) Forecasting
All of these
Given that a manufacturer has implemented and integrated an MRP but not DRP, which of the following is TRUE?
All of these
What question does MRP answer when implemented in the manufacturing process?
All of these
Why is it difficult to implement DRP in a retail environment?
All of these
Given that a manufacturer has implemented and integrated both MRP and DRP, which of the following is TRUE?
All of these are true.
Annual transit cost is a function of which two items?
Annual demand and the transit rate
Which of the following are generally true? (Mark all)
As a firm's degree of globalization increases, is potential for outsourcing internal capabilities for gain advantage with product design increases. Tariffs are the taxes that countries levy on imports from other countries.
In MRP, what is the listing of all the sub-assemblies and components needed to produce a unit of an end item called?
Bill of materials
MRP and DRP are time-based planning systems. What is the significance of "time" in these systems?
Both specify exactly when products are required to be available.
Transportation is a key part of retailers' strategies to ________________________________.
Bridge the physical and digital environments
In China, what product dominates rail movements?
Coal
______________ is pulling together shipments that are going to the same geographic area.
Consolidation
To estimate average in-transit inventory, the transit time (days) should be multiplied by the ________________________________.
Daily demand rate
What is the primary meaning of postponement?
Delay
If using both MRP and DRP, at what level of the supply chain is the independent demand forecasted?
Distribution points to where shipments are made
From a manufacturer's perspective, in what "direction" is DRP focused?
Downstream in the supply chain.
_______ is a process which allows one company to send information to another company electronically rather than using paper.
EDI
To which other information system is a WMS usually directly connected?
ERP system
If lead time is constant, certain and always the same, then the cost of safety stock must be considered when calculating total inventory cost.
False
Which of the following statements are true. Mark any that are.
For retailers like Zara, it is cheaper to produce their products in Spain from a total cost perspective even though the labor costs are high, because of gains in agility. Studies have shown that, in some cases, long lead times due to global sourcing lead to increased retailer markdowns of products. As a firm "reshores"—moving production from offshore to domestic—generally it would require less safety stock held in its supply chain.
Which of the following is a factor in how much tariff a firm must pay when importing a product, such as men's pants?
From which country the product was imported
________ diversity is one of the greatest diversity management challenges facing business today
Generational
Which factor to business strategy is usually more important in China than in the U.S.?
Government relations
What can be used to determine the classification in which a product fits?
Harmonized tariff
Reasons to do business globally include ___________. I. Access to new markets II. Access to new or needed products III. Decrease transportation cost IV. Decrease manufacturing cost
I, II, III
Which of the following is true?
If a company is using LTL, then the transportation rate should be considered when calculating the EOQ
How does the in-transit carrying cost % typically relate to the inventory carrying cost % when the inventory is stored in a warehouse?
In-transit carrying cost % is typically lower than the warehouse inventory carrying cost %.
If the cost of capital for a firm increases, what do you expect happens to the in-transit inventory carrying cost?
In-transit inventory carrying cost increases.
If using less-than-truckload transportation, which aspects of total cost are affected? (Check all that apply.)
In-transit inventory cost Cycle stock cost Safety stock cost Transit cost
At the economy level, the price of transportation is ______________. At the carrier level, it is __________________.
Inelastic, elastic
What has happened to the percentage of the population employed in manufacturing since the 1940s?
It has dramatically decreased.
What has happened to the total percentage of GDP associated with manufacturing since the 1940s?
It has not changed much.
As the transit time increases, what happens to the in-transit inventory cost?
It increases
How does postponement likely affect forecast accuracy?
It increases forecast accuracy.
As the transit time increases, what happens to the in-transit inventory cost?
It increases.
In the future, how is the heterogeneity of products on a given truckload expected to change?
It is expected to increase.
If using truckload transportation and the transit rate increases, what do you expect should happen to the company's order quantity?
It should stay the same
If a buyer has a choice between carriers who offer the same price, which inventory-related costs should be NOT considered?
Item cost
Which are reasons why a product, like jeans, might be produced in multiple countries?
Labor specialization Agreements between countries (e.g., free trade agreements)
As the number of touch-points in a global supply chain increase, which of the following is likely true?
Lead time variability increases.
Which firm in the supply chain uses an MRP system?
Manufacturer
Which MRP system input element specifies how many, and when, the firm plans to produce each end inventory item?
Master production schedule
What is a benefit of consolidation?
Maximizing the utilization of the transportation unit.
Based on your reading, how would you describe the demographics of today's supply chain management?
Mostly males with an average age of 48
In the U.S., which mode represents the largest total spend?
Motor Carriage
Which type of firm is an intermediary between an ocean carrier and a shipper?
NVOCC
Which of the following is TRUE? a) Most transportation management systems today emphasize mode selection at the expense of other capabilities. b) The TMS is not an appropriate tool for carrier selection. Selecting carriers should be based solely on the relationship between the shipper and the carrier.
Neither (a) nor (b) are true.
The long tail of demand refers to an increased _____________________________.
Number of SKUs
__________________ jobs are involved in the day-to-day management of people and flow of products.
Operations
In the U.S., which is NOT a type of water transportation category?
Plains
Which if any of the following statements are true. Mark all that are.
Postponement adds flexibility and agility to manufacturing and distribution processes. Practicing postponement can be advantageous from both an inventory and forecasting standpoint.
What technology may be used by the warehouse to keep accurate information on incoming items?
Radio frequency identification
In the U.S., which is largest in terms of ton miles moved?
Rail
Which type of inventory is being managed by a MRP system?
Raw materials
Which of the following is a false statement about the development of supply chain management?
Regulation of the transportation industry in 1980s created a competitive environment that paved the way for supply chain management
Which are reasons why doing business in China may be challenging? (Check all that apply)
Relationships between business partners are different. Relationships with the government are different. How carriers are used may be different.
If a company shifts from domestic to offshore production, which of the following statements is/are likely to be true?
Safety stock costs increase.
Which function of a TMS is decreased by the determination of the order in which loads should be tendered to carriers?
Sequencing
______________ is the TMS ability to decide which shipment to tender first.
Sequencing
Executives in the C-suit such as CEOs, COOs, CSCOs, are at which level of employment?
Strategic
How is the capacity of ocean liners typically measured?
TEUs
In regards to warehousing, what is picking?
Taking and collecting items in a specified quantity before shipment to satisfy customers' orders.
What function of TMS makes a shipment available to a specific carrier?
Tendering and dispatching
What is one of the most important operational aspects of a WMS?
The accuracy of the information/data.
Why might starting an LTL carrier be even more difficult than starting a TL carrier?
The capital investment required is much greater
Which primary motivation typically happens first for a U.S. company?
The company wants to produce globally to sell domestically.
What are primary motivations for choosing to do business globally?
The company wants to sell their products in global markets. The company wants to produce globally to sell domestically.
Which of the following statements about MRP systems are TRUE?
The lowest quantity of a certain product that a supplier is willing to sell is known as their MOQ.
If using less-than-truckload transportation and the transit rate increases, what do you expect should happen to the company's order quantity?
The order quantity should decrease
In a warehouse management system, records must be maintained for each item in stock showing:
The quantity on hand, received, and shipped
In today's retail environment, consumers can check for product availability at _____________?
The warehouse and the retailer
If using truckload transportation, which aspects of total cost are affected?
Transit cost
Which of the following can be a big problem for U.S. companies when doing business internationally, such as in India and China?
Transport equipment differences Time zone differences
As the degree of globalization increases, which cost is most likely to increase?
Transportation cost
Which is NOT an input to an MRP system?
Transportation schedule
Applying the total cost concept within logistics often means trying to account for intangible costs, such as markdowns or lost sales.
True
Generally, total annual cost = set up cost + holding cost + safety stock cost + average in-transit inventory cost.
True
Networking can be a important part of career development.
True
To take into account the effects of transportation on total cost, we replace item cost (C) with item cost plus transit rate (C + Cm) in the total annual cost equation.
True
When comparing two different carriers or modes of transportation, there are probably two major differences; cost and service.
True
Which of the following statements is true about challenges facing today's supply chain management?
Understanding financial performance and how it is evaluated by company executives is critical to helping SC manage performance
Which country is the world's second largest exporter of merchandise?
United States
From a manufacturer's perspective, in what "direction" is MRP focused?
Upstream in the supply chain.
Logistics costs include which of the following?
all of these and more
Which of the following benefits did Walmart achieve from their early network design strategy?
all of these were benefits
The more complex the end item, the ___________ the Bill of Materials Explosion.
bigger
In an MRP system, component demand is _____________:
calculated by the MRP system from the master production schedule.
Suppose a company orders 10 pallets of bottled water, 14 oz. per bottle, and $0.05 per bottle. There are 2,000 bottles per pallet. Suppose they use a truckload carrier and it costs a flat rate of $1,000 for the transportation. So the purchase cost is $0.05 per bottle X 2,000 bottles per pallet X 10 pallets = $1,000. So the purchase cost plus the transportation cost is $2,000, hence, the total cost per bottle is $2,000 / 20,000 bottles = $0.10 per bottle. In this example, the company only ordered 10 pallets but a truck load has a capacity of about 20 pallets of bottled water. Instead, suppose they ordered 20 pallets of bottled water, the transportation cost will be the same but the purchase cost will now be $0.05 per bottle X 2,000 bottles per pallet X 20 pallets = $2,000. Hence the purchase cost plus the transportation cost is $3,000, so the total cost per bottle is $3,000 / 40,000 bottles ≈ $0.08 per bottle (rounded up from $0.075 per bottle). This demonstrates which of the following concepts?
economies of scale
Inventory requirements of a manufacturer that is part of a distribution requirements planning system are typically calculated from:
forecasted end demand of the downstream partners
Supply chain management is the management of the _______ of business processes between functions in a firm and with suppliers and customers.
integration
Process redesign is concerned with improving performance but does so by changing ______.
the order of the activities
The term ____________________ today refers to a firm that supplies logistics and possibly other supply chain management services.
third party logistics provider