BUAD 331 Exam 3
Which of the following factors typically contribute to increased delays and variability of lead times in the global supply chain? A. A lean fulfillment model B. An agile fulfillment model C. The use of cross-docking and flexible fulfillment strategies D. Complexity required for movement of goods between countries E. Complexity of exchanging different currencies
A. A lean fulfillment model
Which of the following "building materials," if applied within a supply chain relationship, is most indicative of a strong relationship? A. Becoming operationally integrated B. Regular information exchanges C. A formal contract D. Establishing cooperative norms
A. Becoming operationally integrated
_______________ is the physical integration of disparate systems among supply chain ecosystem members to exchange information in a timely and qualitative manner. A. Business-to-business integration B. Business-to-customer integration C. Customer-to-business integration D. Customer-to-customer integration
A. Business-to-business integration
This information tool provides the capability for all the different parts of an organization to share data stored in one consistent, standardized data warehouse. A. ERP B. MRP C. DRP D. EOQ
A. ERP
What key product type is marked by contribution margins of 5 to 20 percent, six- to twelve-month lead times, and low product variety? A. Functional B. Computers C. Innovative D. Luxury E. Automobiles
A. Functional
Noodles & Company uses Coca-Cola Freestyle beverage machines that allow people to select from more than 100 regular and low-calorie brands. What kind of order fulfillment technique is Coca-Cola Freestyle beverage machine using? A. Hybrid lean and agile B. EOQ C. Lean D. Agile
A. Hybrid lean and agile
How is IBM's Watson impacting supply chain performance? A. Identifies "hidden insights" to make data-driven decisions B. Reads tweets to find out what products consumers are asking for C. Orders and re-orders products based on the consumer's expressed needs D. Creates new avenues in which to sell product
A. Identifies "hidden insights" to make data-driven decisions
What do we refer to as the number of different interpersonal ties connecting people in the buyer and supplier firm? A. Relationship density B. Relationship composition C. Relationship ties D. Relationship number
A. Relationship density
What is one major issue that still exists in a lean fulfillment model? A. Requirement to hold inventory in anticipation of customer orders B. Longer lead times C. Greater uncertainty in raw material inventory D. Need for fewer deliveries
A. Requirement to hold inventory in
Supply chain connections that consist of cognitive and/or emotional interactions among people that work in the supply chain, through which each party seeks to elicit a feeling, object, or behavior are called: A. Social exchanges. B. Physical exchanges. C. Informal business meetings. D. Intangible exchanges.
A. Social exchanges.
Which of the following is not a technique for fulfilling customer orders? A. Supply cycle time B. Anticipate form, time, and place C. Full Postponement D. Make to stock, postpone time/place
A. Supply cycle time
What would happen if Tesla were to structure all of its supplier relationships as partnerships? A. The company would expend too many resources on relationships that don't create much value, leading to excessive costs. B. All of its suppliers would have nearly perfect performance, leading to maximum profitability. C. It would struggle to keep second and third-tier suppliers engaged in the company's processes. D. The supply base would grow infinitely as the result of the great reputation the company would have in the supply market.
A. The company would expend too many resources on relationships that don't create much value, leading to excessive costs.
Electronic linkages help to ensure large businesses and SMBs can more efficiently and effectively execute procurement and fulfillment processes? A. True B. False
A. True
Procurement, conversion, and logistics are activities that must be done to fulfill the exchange commitment by creating form, time, and place value. A. True B. False
A. True
Demand for fashion goods are difficult to predict. Zara produces standardized, un-dyed clothes beforehand, and then dyes clothes into different colors once end-customer demand is realized. Why does Zara do this? A. Zara postpones the dyeing process to help match supply capacity to uncertain demand. B. Producing and shipping un-dyed clothes creates the necessary inventory for demand. C. Fashion goods have long lifecycles and economies of scale are needed. D. Zara has advanced forecasting tools necessary to predict demand for each color.
A. Zara postpones the dyeing process to help match supply capacity to uncertain demand.
The economic order quantity (EOQ) model aims to: A. calculate the optimal amount of inventory to be reordered by balancing ordering costs with carrying costs. B. minimize inventory costs by eliminating safety stock. C. minimize total supply chain landed costs. D. establish the optimal amount of inventory to be reordered by balancing carrying costs with transportation costs.
A. calculate the optimal amount of inventory to be reordered by balancing ordering costs with carrying costs.
The Nintendo Switch, while highly anticipated and successful, experienced suppressed sales due to: A. inadequate supply planning for a key part. B. competition from key rivals in the gaming console market. C. bad marketing strategy. D. defective parts in manufacturing.
A. inadequate supply planning for a key part.
Exchanges between supply chain partners are becoming more and more complex due to globalization and the proliferation of supplies, components, and information. As supply chains become more complex, firms naturally move toward: A. operational integration and relationship-specific adaptations. B. contracts that lessen the risk. C. transactional relationships. D. using fewer partners to lessen the complexity.
A. operational integration and relationship-specific adaptations.
Lean order fulfillment differs from traditional order fulfillment in that lean utilizes: A. smaller inventory deployment and shorter cycle times. B. smaller inventory deployment and longer cycle times. C. larger inventory deployment and shorter cycle times. D. larger inventory deployment and longer cycle times. E. There is no difference between lean and traditional order fulfillment.
A. smaller inventory deployment and shorter cycle times.
Creating partnerships that provide access to unique and valuable resources that can serve as the basis for outcompeting other businesses in the same sector in the long term is the idea behind: A. the relational view of competition. B. the transactional view of competition. C. partnership management. D. supplier management.
A. the relational view of competition.
The presence of a relationship spiral indicates that: A. there is momentum gaining either for or against the relationship. B. the relationship is highly successful. C. the relationship is declining. D. there are too many actors involved in the relationship.
A. there is momentum gaining either for or against the relationship.
A firm expending great amounts of resources in pursuit of benefits while the partner exerts little effort is an example of what type of relationship? A. A mutually beneficial relationship B. A one-sided relationship C. A transactional relationship D. A financial relationship
B. A one-sided relationship
_____________ is the IT adoption approach that is most likely to result in a more rigid IT infrastructure. A. Best-of-breed B. Best-of-suite C. Single vendor solution D. None of the above
B. Best-of-suite
___________ represents the most ubiquitous and traditional form of inter-organizational communication systems. A. API B. EDI C. SRM D. CRM
B. EDI
Which of the following enterprise systems is considered to be more intra-organizational? A. CRM B. ERP C. SRM D. TMS
B. ERP
Approximately 20 percent of supply chain leaders believe the digital supply chain will be the predominant model within the next five years. A. True B. False
B. False
Blockchain is an example of demand pull. A. True B. False
B. False
DeRoyals's Continuum product is an example of technology push. A. True B. False
B. False
EDI and API are essentially the same thing called by different names. A. True B. False
B. False
In the context of a-commerce, always on is equivalent to 24/7 operations. A. True B. False
B. False
The overwhelming majority of organizations understand the value and benefit of analytics to the point that they have a defined analytics strategy? A. True B. False
B. False
Warehouse automation is another phrase for WMS. A. True B. False
B. False
Which of the following is the primary issue enterprise systems are designed to address? A. Business process standardization B. Information fragmentation C. Lack of control over personnel work tasks D. None of the above
B. Information fragmentation
The move to lean and then responsive value creation requires a "paradigm shift" from a ________ mentality to a customer ________ mentality. A. Hybrid style, retention B. Product-focused push, demand-focused pull C. Demand-focused push, product-focused pull D. Product-order completion, time-saving
B. Product-focused push, demand-focused pull
In high-end restaurants, steaks are generally cooked after the wait staff place the order to the kitchen with customers' preference. Which of the following techniques best describes the fulfillment of steak orders to the final customer? A. Anticipatory B. Responsive C. Postpone D. Lean
B. Responsive
What type of supply chain would be most appropriate during the introductory and growth stages due to demand being highly unpredictable? A. Efficient B. Responsive C. Multiple Hybridized D. Semi-functional
B. Responsive
What negative impact can result from large lot, long lead-time operations? A. Customers are overjoyed. B. The items are in places and at times customers don't want them. C. The company's sales increase too much. D. The company's profits increase too much.
B. The items are in places and at times customers don't want them.
Define order cycle time. A. The total cost of ownership combined with the customer value of a product B. The total elapsed time from when the customer first recognizes need to when that need is ultimately fulfilled C. The total elapsed time from when the customer first orders the product to when that product is shipped to them D. None of the above
B. The total elapsed time from when the customer first recognizes need to when that need is ultimately fulfilled
According to Hershey's video example, the company view its supplier, Cargill, as: A. a small supplier in their vast supply chain. B. a strategic supplier and extension of the company. C. a transactional partner. D. a competitor in the same market.
B. a strategic supplier and extension of the company.
There is a shift occurring where competitive advantage is no longer realized on product features alone, but instead on providing excellent service through: A. offering complementary products. B. better availability and cost. C. warranties. D. cheaper products.
B. better availability and cost.
When transactional rather than relational connections are of the greatest importance, firms often employ the use of: A. bargaining. B. contracts. C. social gathering. D. frequent business meetings.
B. contracts.
The supply chain driver that refers to the extent to which customer and supply markets of connected parties are constantly changing or unpredictable is called: A. the availability of alternatives. B. market dynamism. C. supply chain complexity. D. substitutability.
B. market dynamism.
Partners that have systems, procedures, or routines connected seamlessly with the other are considered to be: A. risky. B. operationally integrated. C. sharing information. D. unsustainable.
B. operationally integrated.
In relation to the overall supply chain, ______ place a priority on cost savings while _______ place a priority on doing whatever necessary to deliver form, time, and place as promised on a specific order. A. downstream operations, upstream operations B. upstream operations, downstream operations C. marginal operations, radical operations D. None of the Above
B. upstream operations, downstream operations
If average daily demand for a product is twelve units and average lead time for an order to arrive is four days, what is the reorder point (ROP) for the product? A. 16 units B. 12 units C. 48 units D. 4 units
C. 48 units
The demand penetration point is the place or stage in the supply chain where ________ are accepted and fulfilled. A. Honey Nut Cheerios B. Full postponement C. Consumer orders D. Aggregated forecasts
C. Consumer orders
Which of the following is not one of the three questions a manager should ask when making an order fulfillment decision? A. Where should we position the product? B. What should we produce or purchase? C. How should we price the product? D. How much should we produce or purchase?
C. How should we price the product?
What key product type is marked by contribution margins of 20 to 60 percent, one- or two-day lead times, and high product variety? A. Functional B. Raw materials C. Innovative D. Luxury E. Purses
C. Innovative
Which of the following features are not part of a TMS system: A. Route Optimization and Consolidation B. Mode and Carrier Selection C. Inventory Management D. Track and Trace
C. Inventory Management
Why does L'Oreal believe that collaborating with suppliers is the key to future business success? A. Suppliers have most of the market knowledge and therefore will be the most powerful members of the supply chain. B. In the future, all business will be global, and so it will be important for suppliers around the world to understand each other. C. It is very challenging to satisfy end customers if the members of the supply chain work as individuals focused only on satisfying their own requirements. D. A business is only able to do what its suppliers will allow it to do.
C. It is very challenging to satisfy end customers if the members of the supply chain work as individuals focused only on satisfying their own requirements.
______ added time is the percent of total cycle time that a product or service may spend waiting to have form, time, or place value added to it. A. Late shipment B. Product cycle C. Non-value D. Value
C. Non-value
With regards to supply chain connection composition, how would you best describe Best Buy implementing Samsung Experience Locations inside its retailer locations? A. Cooperative norms B. Contractual bonds C. Relationship specific adaptation D. None of the above
C. Relationship specific adaptation
A truck shows up at a manufacturing plant with only 3/4 of an order of parts needed to support the manufacturing schedule. Management knew in advance that this order was going to arrive less than complete and were able to for the remaining 1/4 of parts to be sent from another vendor via overnight shipping. This is an example of what benefit of information connectivity? A. Operational Efficiency B. Analysis and Diagnosis C. Responsiveness D. Planning
C. Responsiveness
A system that enables a company to optimize its procurement strategy is a ____________ system. A. ERP B. WMS C. SRM D. TMS
C. SRM
___________ risks are more about behaviors or perceptions of individuals that can negatively impact the IT solution in question. A. Financial B. Integration C. Social D. Technical
C. Social
The goal of a _____________ is to facilitate the movement of goods and raw materials from origin to destination in an efficient, reliable, and cost-effective manner. A. Digital supply chain B. SRM C. TMS D. WMS
C. TMS
Which of the following is not a way that ValueLink helps improve Cardinal Health's supply chain? A. Configures deliveries in totes based on specific demand and delivers them organized by department B. Lowers inventory costs C. Uses the central store for stocking and picking products D. Improves visibility
C. Uses the central store for stocking and picking products
A more formalized exchange that culminates in the delivery of a service or product is called a: A. distributor. B. connection. C. business process. D. supplier.
C. business process.
Possible loss of proprietary ideas, product designs, and business processes could be a negative in regard to: A. cooperative norms. B. contracts. C. information sharing. D. forming a purely transactional relationship with a partner in the supply chain.
C. information sharing.
A packaging manufacturer producing a special size and shape box, which costs a bit more, for its most strategic partner is an example of: A. operational integration. B. regular information sharing. C. relationship-specific adaptations. D. cooperative norms.
C. relationship-specific adaptations.
When a supply chain connection is present in spider diagrams, that means: A. money must have been exchanged between the two partners. B. physical good flow between the two partners. C. there is a meaningful exchange association between trading partners in the supply chain. D. they talk often.
C. there is a meaningful exchange association between trading partners in the supply chain.
What is the economic order quantity (EOQ) in this system? (Graph with order quantity of 400 units) A. 5 days worth of inventory B. 10 units of inventory C. 200 units of inventory D. 400 units of inventory
D. 400 units of inventory
Which of the following is not a common reason organizations invest in IT? A. Desire or need to automate manual processes B. Heavy reliance on IT platforms for day-to-day operations C. IT viewed as a "silver bullet" D. Additional funds allocated to the IT operating budget
D. Additional funds allocated to the IT operating budget
A supply chain relationship: A. can spiral up or down over time, depending on performance realized along the way. B. can become denser, of higher quality, or better composed if resources are allocated. C. should be "right-sized" rather than "maximized" for all partners. D. All of the above
D. All of the above
What negative outcomes can result from large lot-sized, long lead-time operations? A. Customers don't want the items. B. The items are in places and at times customers don't want them. C. Unsold products are sold at reduced prices or scrapped altogether. D. All of the above
D. All of the above
When the product needed is commoditized and price is the primary variable driving the transaction decision, it is often advisable that the firm: A. invest in one strong relationship. B. hold just a couple strong relationships with suppliers. C. manufacture the needed product internally. D. Avoid constructing a relationship, and use economic connections.
D. Avoid constructing a relationship, and use economic connections.
In our example from the text, what problem could arise if Volkswagen were to build too strong of a relationship with a small audio equipment company, creating an agreement with a fixed, low price? A. The supplier could encounter a supply chain problem that causes failure to deliver products. B. The equipment supplier could produce too much inventory. C. An innovation could be unveiled by another supplier with benefits that VW would be forced to forego. D. Both a and c could be possible problems for VW.
D. Both a and c could be possible problems for VW.
Which of the following relationship types is the best to pursue? A. Transactional contracts when the objective is to reduce risk of supply disruption B. Relational contracts when the objective is to get the lowest unit price for a purchase C. Translational contracts when the objective is to secure specialized assets to produce a sub-component D. Either transactional or relational contract depending upon the goal
D. Either transactional or relational contract depending upon the goal
Ordering supplies twice per year vs four times per year can result in _______ due to __________? A. Shorter lead-times, higher set-up or ordering costs B. Higher ordering costs, lower transportation costs C. Higher inventory carrying costs, lower marginal costs D. Higher carrying costs, higher average inventory levels E. Lower inventory carrying costs, lower average inventory levels
D. Higher carrying costs, higher average inventory levels
Ted wanted to paint his upstairs hallway. He selected 4 different colors of brown/ beige and chose "Puppy Paws," which Lowe's mixed for him on site. This method of order fulfillment is an example of ________. A. Time postponement B. Place postponement C. Logistics postponement D. Manufacturing or form postponement
D. Manufacturing or form postponement
Which ERP vendor entered the enterprise system market nearly 30 years after the first solution was introduced? A. JDA B. Microsoft C. NetSuite D. Oracle E. SAP
D. Oracle
Ted's Wicked Dive Shop needs to put together a re-order plan for breathing regulators. Given that this product is high cost and highly customized in order to meet the unique demands of different divers, Ted should utilize which of the following strategies? A. Order regulators when all existing stock reaches the re-order point (ROP) B. Order product from the supplier that gives him the best price at the time of order C. Order regulators twice per year to keep set-up and order placement costs to a minimum D. Order regulators based on actual customer orders and work with supplier-partners to quickly configure and ship the regulators directly to customers E. Order regulators in bulk using a manufacturing demand forecast model coupled with a long lead-time based EOQ to take advantage of manufacturing and transportation discounts
D. Order regulators based on actual customer orders and work with supplier-partners to quickly configure and ship the regulators directly to customers
Most supplier organizations only measure order cycle time from when they ______ till when they ship an order. A. Receive a customer service report B. Mine material C. Plan Production D. Receive an order
D. Receive an order
Which enterprise system facilitates an organization working more effectively with its supplier pool? A. CRM B. ERM C. PLM D. SRM
D. SRM
Which of the following is NOT a characteristic of an efficient supply chain? A. Supply predictable demand B. Maximize performance and minimize cost C. Generate high turns to minimize inventory D. Select primarily for speed, flexibility, and quality E. Select primarily for cost and quality
D. Select primarily for speed, flexibility, and quality
_________________ is an architectural philosophy that can facilitate organizations use of reusable services that enable more seamless and timely information exchange. A. Cloud-based architecture B. Enterprise architecture C. Information architecture D. Service-oriented architecture
D. Service-oriented architecture
Ted and his friend Matt start a new company called Crabman Auto Parts. They have heard about agile order fulfillment and are interested in implementing it to decrease costs. Which of the following best describes the strategy Crabman Auto Parts should follow to take advantage of agile order fulfillment? A, Increase variability of demand by running frequent promotional campaigns and discounts for select products B. Purchase off-season products in bulk to take advantage of manufacturer's discounts C. Increase complexity in the supply chain to ensure products are made to automobile manufacturer's strict specifications D. Synchronize information exchange across the supply chain and form strategic relationships with key customers and suppliers E. Select suppliers based on lowest unit purchase price regardless of delivery reliability
D. Synchronize information exchange across the supply chain and form strategic relationships with key customers and suppliers
A contract relationship that is at arms-length, focuses on commercial transactions, and mitigates risk is consider a: A. Planning contract. B. Supplier contract. C. Relational contract. D. Transactional contract.
D. Transactional contract.
The purpose of a _________ is to observe and document everything he/she sees. A. Business process owner B. Project manager C. Supply chain IT liaison D. Watcher E. None of the above
D. Watcher
If Harley Davidson has many suppliers of seat covers to choose from, and quality is held constant, it will likely: A. become operational integrated with one. B. use a relationship-specific adaptation. C. choose the best quality product. D. enter into contractual agreements with several suppliers.
D. enter into contractual agreements with several suppliers.
The difference between the customer's desired order cycle time and the total supply chain order cycle time is known as: A. order cycle time B. logistics lead time C. customer delivery cycle D. lead time gap
D. lead time gap
If average daily demand for a product is 5 units and average lead time for an order to arrive is 7 days, what is the reorder point (ROP) for the product? A. 21 units B. 12 units C. 7 units D. 5 units E. 35 units
E. 35 units
In a synchronized supply chain using time-based competition, information is usually substituted for what? A. Customer data B. Form utility C. Profits D. Agile fulfillment E. Inventory
E. Inventory
The intersection of which two solutions is vital for effective inventory management? A. CRM and SRM B. CRM and TMS C. SRM and PLM D. SRM and WMS E. TMS and WMS
E. TMS and WMS
What are the 4 stages of the Product Life Cycle?
introduction, growth, maturity, decline