Ch.11

Which organization has developed principles and standards to be used as guidelines for ethical​ behavior? A. Institute for Supply Management B. Institute for Procurement Management C. Institute for Vendor Management D. Institute for Purchasing Management

A. Institute for Supply Management

What is developing the ability to produce goods or services previously purchased or actually buying a supplier or a​ distributor? A. vertical integration B. outsourcing C. horizontal integration D. virtual companies

A. vertical integration

What is a supply chain designed to optimize both forward and reverse​ flows? A. ​open-loop supply chain B. ​closed-loop supply chain C. ​bullwhip-loop supply chain D. ​reverse-loop supply chain

B. ​closed-loop supply chain

Which of the following is the first stage of supplier​ selection? A. negotiations B. supplier development C. supplier evaluation D. contracting

C. supplier evaluation

When determining the optimal number of​ facilities, logistics-related costs do NOT usually include which of the following​ costs? A. transportation B. purchasing C. inventory D. facility

B. purchasing

Which of the following statements is NOT​ true? A. A​ closed-loop supply chain is a designed to optimize only reverse flows. B. A​ closed-loop supply chain prepares for returns prior to product introduction. C. Reverse logistics involves the processes of sending returned products back up the supply chain for​ resale, repair,​ reuse, remanufacture,​ recycling, or disposal. D. ​"Closed-loop supply​ chain" is sometimes used as a synonym for​ "reverse logistics."

A. A​ closed-loop supply chain is a designed to optimize only reverse flows. Closed-Loop handles reverse and forward

Which of the following statements is NOT one of the differentiation strategy​ decisions? A. Use buffer stocks to ensure speedy supply. B. Gather and communicate market research data. C. Modular design to aid product differentiation. D. Minimize inventory to avoid product obsolescence.

A. Use buffer stocks to ensure speedy supply.

Which of the following could reduce distribution​ risk? A. careful​ selection, monitoring and effective contracts with penalties B. use multiple suppliers C. ​cross-country diversification D. secure IT systems

A. careful​ selection, monitoring and effective contracts with penalties

Supply chain managers outsource logistics to meet three​ goals: A. drive down inventory​ investment, lower delivery​ costs, and improve delivery reliability and speed. B. lower delivery​ costs, improve delivery reliability and​ speed, and provide better market response. C. drive down inventory​ investment, lower delivery​ costs, and provide better market response. D. drive down inventory​ investment, improve delivery reliability and​ speed, and provide better market response.

A. drive down inventory​ investment, lower delivery​ costs, and improve delivery reliability and speed.

Airfreight A. is a​ fast-growing mode of shipping. B. is the best way to transport natural gas. C. is the oldest means of freight transportation. D. represents about​ 10% of the tonnage shipped in the United States.

A. is a​ fast-growing mode of shipping.

Trucking A. is increasingly using computers to manage its operations. B. is one of the least flexible transportation modes. C. does not play a role in multimodal shipping. D. is the least used transportation mode for manufacturing goods.

A. is increasingly using computers to manage its operations.

Which of the following strategies is part​ collaboration, part purchasing from few​ suppliers, and part vertical​ integration? A. keiretsu networks B. virtual companies C. horizontal integration D. joint ventures

A. keiretsu networks

The advantage of having many potential suppliers is their willingness to A. offer lower prices in the short term. B. provide innovations. C. provide technical expertise. D. participate in JIT.

A. offer lower prices in the short term.

The​ do-it-yourselfer plucked a gallon can of base paint from the shelf of the local hardware store and handed it to​ Keith, the cheerful clerk at the paint counter. Their eyes met briefly and the​ do-it-yourselfer silently handed over sample​ 150C-1, Musical​ Mist, to the clerk. It was impractical to keep several gallons of every possible color on the shelves at the hardware​ store, so the paint manufacturer had created clever workaround. The workaround was a​ computer-based system that added predetermined quantities of pigments to a gallon can of base paint depending on the desired​ shade, in this​ case, Musical Mist. The hardware store now needed to stock only the base​ paint, this​ machine, and a small supply of paint pigments in order to create the thousands of colors in its catalog. This scenario is a prime example of A. postponement. B. the bullwhip effect. C. drop shipping. D. ​vendor-managed inventory.

A. postponement.

Which negotiation strategy bases price on a​ published, auction, or index​ price? A. ​market-based price model B. ​cost-based price model C. ​supply-based price model D. competitive bidding

A. ​market-based price model

Which of the following statements is NOT​ true? A. ​Top-notch supply chain performance requires good downstream​ management, just as it does good upstream management. B. Finding the optimal number of facilities represents a critical and static decision. C. An effective supplier management program and an effective distribution management program may make the difference between supply chain success and failure. D. Packaging and logistics are important distribution​ decisions, because the manufacturer is usually held responsible for breakages and serviceability.

B. Finding the optimal number of facilities represents a critical and static decision.

Which of the following is NOT one of the benefits accrued from a centralized purchasing​ function? A. Leverage purchase volume for better pricing. B. Increase the duplication of tasks. C. Maintain professional control over the purchasing process. D. Devote more resources to the supplier selection and negotiation process.

B. Increase the duplication of tasks.

What is a​ long-term purchase commitment to a supplier for items that are to be delivered against​ short-term releases to​ ship? A. postponement B. blanket order C. drop shipping D. advanced shipping notice

B. blanket order

Three criteria for designing distribution networks to meet customer expectations​ are: A. low​ cost, product choice and service. B. rapid​ response, product​ choice, and service. C. rapid​ response, low​ cost, and service. D. low​ cost, rapid response and product choice.

B. rapid​ response, product​ choice, and service.

With regard to the​ cost-based price model negotiation​ strategy, which of the following is​ true? A. Prices float based on what the customer is willing to pay. B. Prices are based in some way upon market standards agreed to by both supplier and purchaser. C. Prices are based upon supplier costs. D. Potential suppliers each submit quotations as to​ price, delivery, and so on.

C. Prices are based upon supplier costs.

The cost to produce the goods or services sold for a given period is referred to as A. inventory investment. B. inventory turnover. C. cost of goods sold. D. weeks of supply.

C. cost of goods sold.

The advantage of having few suppliers is to A. take advantage of diseconomies of scale. B. pursue low cost. C. form a​ long-term relationship. D. look for​ short-term attributes.

C. form a​ long-term relationship.

Three common measures of supply chain performance​ are: A. ​debt/equity ratio, inventory​ turnover, and weeks of supply. B. percentage invested in​ inventory, inventory​ turnover, and​ debt/equity ratio. C. percentage invested in​ inventory, inventory​ turnover, and weeks of supply. D. percentage invested in​ inventory, debt/equity​ ratio, and weeks of supply.

C. percentage invested in​ inventory, inventory​ turnover, and weeks of supply.

Which of the following statements is true regarding​ cross-sourcing? A. ​Cross-sourcing enhances technological skills. B. ​Cross-sourcing describes suppliers who become part of a company coalition. C. ​Cross-sourcing uses one supplier for a component and a second supplier for another​ component, where each supplier acts as a backup for the other. D. ​Cross-sourcing develops the ability to produce goods or services previously purchased or actually buying a supplier or distributor.

C. ​Cross-sourcing uses one supplier for a component and a second supplier for another​ component, where each supplier acts as a backup for the other.

A lawnmower assembly plant uses a variety of​ nuts, bolts,​ screws, and other fasteners in its operation. Its supplier delivers these items directly to the point of use on the assembly line and ensures that there are always sufficient quantities of fasteners to maintain the production schedule. This is an example of A. single stage control of replenishment. B. postponement. C. ​vendor-managed inventory. D. ​e-procurement.

C. ​vendor-managed inventory.

Which of the following statements is NOT true regarding channel​ assembly? A. Channel assembly postpones final assembly of a product so the distribution channel can assemble it. B. Channel assembly represents one way to implement postponement. C. Channel assembly treats distributors more as manufacturing partners than as distributors. D. Channel assembly sends individual​ components, modules, and finished​ products, to the distributor.

D. Channel assembly sends individual​ components, modules, and finished​ products, to the distributor.

Which of the following is NOT true about reverse logistics as compared to forward​ logistics? A. Pricing is dependent on many factors. B. Distribution costs are less directly visible. C. Forecasting is more uncertain. D. Speed is often very important.

D. Speed is often very important.

Which of the following statements is NOT true regarding the bullwhip​ effect? A. Bullwhip fluctuations in the supply chain increase the costs associated with​ inventory, transportation, shipping and receiving. B. Inaccurate information results in distortions and​ fluctuations, causing what is known as the bullwhip effect. C. Bullwhip fluctuations in the supply chain decrease customer service and profitability. D. The bullwhip effect occurs as order are relayed from​ retails, to​ distributors, to​ wholesalers, to​ manufacturers, with fluctuations decreasing at each step in the sequence.

D. The bullwhip effect occurs as order are relayed from​ retails, to​ distributors, to​ wholesalers, to​ manufacturers, with fluctuations decreasing at each step in the sequence.

Which of the following mitigation tactics is NOT designed to reduce the risk of information loss or​ distortion? A. secure IT systems B. redundant databases C. training of supply chain partners on the proper interpretations and use of information D. alternate sourcing

D. alternate sourcing

Which of the following statements is NOT generally an implication stemming from an increase in the number of​ facilities? A. increased facility costs B. increased customer satisfaction C. quicker response D. decreased total logistics cost

D. decreased total logistics cost

Which of the following statements is NOT one of the response strategy​ decisions? A. fast transportation B. use buffer stocks to ensure speedy supply C. low setup time D. gather and communicate market research data

D. gather and communicate market research data

Which of the following mitigation tactics could reduce economic​ risk? A. franchising and licensing B. multiple transportation modes and warehouses C. subcontractors on retainer D. purchasing contracts that address price fluctuations

D. purchasing contracts that address price fluctuations

Prior to embarking on supply chain​ design, operations managers must first consider A. how to manage supply chain inventory. B. what kind of distribution network to have. C. how to select suppliers. D. ​"make-or-buy" and outsourcing decisions.

D. ​"make-or-buy" and outsourcing decisions.

What is transferring a​ firm's activities that have traditionally been internal to external​ suppliers? A. vertical integration B. keiretsu network C. outsourcing D. ​make-or-buy

D. ​make-or-buy