Intro to Supply Chain Final

Companies outsource for many reasons. Which of the following is typically a reason for outsourcing? A. All of these B. Risk Mitigation C. Performance Improvement D. Cost reduction E. Asset reduction

A. All of these

Which of the following about the future of data is most likely true? A. Both the digital universe and the amount of tagged data will increase over the next five years B. The amount of tagged data will decrease in the next five years C. The digital universe will double in the next five years D. None of the above

A. Both the digital universe and the amount of tagged data will increase over the next five years

Which organizational factors are needed to leverage supply chain visibility and big data? A. Clear business case for using the data B. Decentralized decision making structure C. Transportation infrastructure D. Outsourced analytical skills

A. Clear business case for using the data

Which is a key reason that companies need to develop more agile capabilities? A. Customer purchase patterns are changing B. Interest rates are low C. Retail point of sale technology costs are decreasing D. Manufacturing technology is changing rapidly

A. Customer purchase patterns are changing

The % of demand fulfilled from on hand inventory is called __________. A. Fill rate B. GMROI C. Stock out D. ROA

A. Fill rate

Which of the following is a theme throughout the course? A. How logistics and supply chain management can be used to create a competitive advantage B. Supply chain management is the same thing as logistics, but just a new term C. Logistics is just another term for transportation D. Supply chain management and logistics are not the same and are not even similar

A. How logistics and supply chain management can be used to create a competitive advantage

The maker movement will __________ the speed to markets of new products. A. Increase B. Keep equal C. Decrease

A. Increase

Which supply chain strategy works best in high volume, low variety and predictable environments? A. Lean B. Just in time C. Kanban D. Agile

A. Lean

Fill rate is the % of demand fulfilled from __________. A. On hand inventory B. Losses C. Profit D. Stock outs

A. On hand inventory

The __________ component of customer service concerns how the policies, organizational structure, and culture of a company affect customer service. A. Pre-transaction B. Post-transaction C. Mid-transaction D. Transaction

A. Pre-transaction

The direct effect of an increase in inventory is reduction in __________. A. ROA B. Profit C. Stock out D. Fill rate

A. ROA

The direct effect of an increase in the number of distribution centers is to increase assets which reduces __________. A. ROA B. Fill rate C. Profit D. GMROI

A. ROA

Which is a key outcome of a lean strategy? A. Reduced waste B. Increased waste C. Increased inventory cost D. Increased transportation cost

A. Reduced waste

Which is a key outcome of an agile strategy? A. Satisfied customers B. Reduced inventory C. Increased cash flow D. Reduced waste

A. Satisfied customers

Advanced shipment notices (ASNs) is a __________-level information type. A. Supplier B. Market C. Customer

A. Supplier

Which is a key part of sensing? A. Supply chain visibility B. Sales C. Responsiveness D. Agility

A. Supply chain visibility

You want to compute an optimal service level for stocking inventory. The correct formula is: A. The cost of not having enough per unit, divided by the sum of the cost of having too much and the cost of not having enough B. The cost of having too much, divided by the sum of the cost of having too much and the cost of not having enough C. Either of these will do D. Neither of these are correct

A. The cost of not having enough per unit, divided by the sum of the cost of having too much and the cost of not having enough

Assume an item is in stock for 2 weeks but out of stock on the third week. We could use this information to calculate __________ A. The percentage of time in stock (PTIS) B. None of these C. The item fill rate (IFR) D. The percentage of items in stock

A. The percentage of time in stock (PTIS)

Which are fundamental characteristics of firms with high internal integration? A. They ensure functional awareness B. They facilitate information exchange across functional areas C. They integrate planning activities D. They have big data capabilities

A. They ensure functional awareness B. They facilitate information exchange across functional areas C. They integrate planning activities

Facebook likes and tweets are what type of data? A. Unstructured B. Strict C. Relaxed D. Structured

A. Unstructured

The emergence of omnichannel retailing makes the need for which type of flexibility particularly important? A. Variety B. Volume C. New Product D. Customization

A. Variety

Which type of flexibility refers to the ability to manage transitions in production and delivery across heterogeneous products? A. Variety flexibility B. Volume flexibility C. Customization flexibility D. New product flexibility

A. Variety flexibility

You only need two parameters to define a normal distribution; the mean and __________? A. The standard deviation B. The average C. The mode D. None of these

A. the standard deviation

Ron's Sports operates 365 days a year. Annual inventory turns of basketballs is 10. How many days of supply does that represent? A. 52 B. 37 C. 370 D. 100 E. 10

B. 37

Assume an item has a demand of 1 per day and a demand of 3 every 7th day. However, the item is out of stock every 7th day. What would be the item fill rate (IFR)? A. 34% B. 67% C. 71% D. 40%

B. 67%

The amount received by a firm is 100 units and it sold 25 units. Assuming initial inventory is zero, what is the perpetual inventory? A. 125 units B. 75 units C. 25 units D. 4 units

B. 75 units

In the past two years, what percentage of all recorded data has been recorded? A. 10% B. 90% C. 75% D. 40%

B. 90%

A process is an ordered set of __________. A. Tasks B. Activities C. Silos D. Functions

B. Activities

A leveling of production costs between China, Mexico, and the United States means that U.S. firms will increasingly focus on __________ to be competitive. A. Flexibility B. All of these C. Agility D. None of these E. Responsiveness

B. All of these

GMROI __________. A. Measures the performance of inventory B. All of these C. Is the Gross Margin Return on Inventory Investment D. Includes gross margin in the calculation E. None of these

B. All of these

Which of the following are common elements of the total cost ownership model? A. Operation cost B. All of these are part of the TCO model C. Acquisition cost D. Transportation cost E. None of these are part of the TCO model

B. All of these are part of the TCO model

Which of the following benefits did Walmart achieve from their early network design strategy? A. Reduction in transportation costs from the DCs to the stores B. All of these were benefits C. Reduction in in-transit stock to the stores D. Reduction in safety stock at the stores E. Lower cost per store for the DCs to serve the stores

B. All of these were benefits

Resilience in the 4 R's of supply chain competition is defined as being able to __________. A. Consistently execute an activity or process at a target level of performance B. Deal with unexpected disruptions in the supply chain C. Address problems consistently in the same way ever time D. None of these

B. Deal with unexpected disruptions in the supply chain

The direct effect of a (an) __________ in transportation costs is to __________ ROA. A. Decrease; increase B. Increase; reduce C. Decrease; decrease D. Increase; increase

B. Increase; reduce

The objective of Walmart's early network design strategy was to: A. Place stores in "high potential" markets B. Locate stores close to a Distribution Center C. Locate stores close to Bentonville D. Use supply chain savings to drive temporary price reductions E. All of the above

B. Locate stores close to a Distribution Center

Profit divided by assets is: A. Fill rate B. ROA C. GMROI D. Inventory turns

B. ROA

How specific is point-of-sale data? A. SKU-time specific B. SKU-time-location specific C. SKU specific D. SKU-time-location-customer specific

B. SKU-time-location specific

Retail shelf is very expensive because __________: A. The land is expensive B. The opportunity cost of alternate products C. It takes lots of time to put products on the shelf D. The shelf is expensive

B. The opportunity cost of alternate products

Which of the following is a fundamental concept of logistics management? A. If you manage transportation well, all of the other logistics costs are minimized B. There are tradeoffs among many of the logistics costs and customer service targets C. Service levels and inventory investment are unrelated D. Tradeoffs should be ignored and the focus should be on "low hanging fruit"

B. There are tradeoffs among many of the logistics costs and customer service targets

Inventory Turns is ___________ is divided by __________. A. Inventory; assets B. Unit sales; average inventory C. Inventory; unit sales D. Inventory; profit

B. Unit sales; average inventory

How have suppliers traditionally developed order forecasts? A. Guessing B. Using historical order data C. Using inventory data D. Using big data

B. Using historical order data

Average inventory last year was $170,000 and turns were 9. What was cost of goods sold last year? A. $1,120,000 B. $11,200,000 C. $1,530,000 D. $18,889

C. $1,530,000

When a shopper in a retail store encounters an out-of stock, there are a number of reactions that are possible. Which of the following are options discussed in this lesson? A. None of these are options B. Switch to another category but same product type C. All of these are options D. Switch to another brand E. Switch to another size, flavor, or type, within the same brand

C. All of these are options

Logistics is the management of the flow and storage of inventory such that total cost is minimized and __________ are achieved. A. Competitive interactions B. Revenue goals C. Customer service targets D. Shipment goals

C. Customer service targets

Which type of flexibility refers to taking core products and making changes to them? A. Variety flexibility B. Volume flexibility C. Customization flexibility D. New product flexibility

C. Customization flexibility

Which company was an early pioneer in customization flexibility of personal computers? A. HP B. Compaq C. Dell D. Walmart

C. Dell

Supply chain management is the management of the __________ of business processes between functions in a firm and with suppliers and customers. A. Avoidance B. Instrumentation C. Integration D. Institutionalization

C. Integration

For the normal distribution, about __________ of the observations are within +/- 1 standard deviation of the mean, 95% within +/- 2 standard deviations, and about 99% within +/- 3 standard deviations. A. 84% B. 85% C. None of these D. 83% E. 86%

C. None of these

Which of the following metrics tells you how many periods it will take to sell through your inventory on hand? A. Inventory turns B. GMROI C. Periods of supply D. All of these should be used

C. Periods of supply

If store perpetual inventory is greater than zero for 60 of the 100 SKUs in a category then: A. The calculated percentage of time in stock is 40% (assuming perpetual inventory is accurate) B. The calculated item fill rate is 40% (assuming perpetual inventory is accurate) C. The calculated percentage of items in stock is 60% (assuming perpetual inventory is accurate) D. The calculated item fill rate is 60% (assuming perpetual inventory is accurate)

C. The calculated percentage of items in stock is 60% (assuming perpetual inventory is accurate)

Safety stock is __________. A. The standard deviation of the number of units on hand just before a replenishment is received and available for use or sale B. The coefficient of variation of the number of units on hand just before replenishment is received and available for use or sale C. The expected number of units on hand just before a replenishment is received and available for use or sale D. None of these

C. The expected number of units on hand just before a replenishment is received and available for use or sale

Process redesign is concerned with improving performance but does so by changing __________. A. Only the constraints on an activity B. Only the metrics of an activity C. The order of activities D. Only the way an activity is performed

C. The order of activities

Which of the following formulae calculate annual inventory turns? A. Cost of goods sold * value of inventory B. None of these C. Units sold in a year/average number of units in inventory D. Units sold in year/cost of goods sold

C. Units sold in a year/average number of units in inventory

Imagine a customer is looking for a giant specialty candy bar in a store but it is not on the shelf. Suppose that the retail margin on the candy bar is $5 and that 27% of the customers forgo having the candy bar but the other 73% switch to another brand. Suppose that the margin the retailer makes on this brand is also $5 per unit. Then the cost of a stockout per unit of lost sale to the retailer is __________. A. $3.00 B. $3.65 C. $1.50 D. $1.35

D $1.35

The inventory holding cost factor is 25% and the average inventory next year is expected to be $185,000. What is the expected inventory holding cost? A. $4,625,000 B. $7,400 C. Not enough information to determine D. $46, 250 E. $740,000

D. $46,250

The number of devices connected to the internet is how many times greater than one year ago? A. 1 times B. 2 times C. 100 times D. 200 times

D. 200 times

A distribution center has 50,000 cases of ketchup and the forecast is 1,000 cases per day. What is the estimate of the days of supply? A. 100 B. 10 C. 5 D. 50

D. 50

William's Bakery bakes sweet rolls for 80 local supermarkets and sells them through the supermarkets on a consignment basis, which means he only gets paid for the sweet rolls that he sells. He destroys the sweet rolls that don't sell. People in his city love his sweet rolls. The total delivered cost of sweet tolls is $0.40 per unit and her sells it to retailers for $2.00. Given this information, calculate the optimal service level. A. 76% B. 83% C. 78% D. 80%

D. 80%

If you wanted to assess inventory turns of a category with multiple SKUs, the best way to do that would be to __________. A. Just take the sum of the inventory turns for the SKUs in the category B. Just take the average of the inventory turns for the SKUs in the category C. Average the sales for the category and divide by the average inventory level for the category D. Add up the unit sales for the category and divide by the total inventory level for the category

D. Add up the unit sales for the category and divide by the total inventory level for the category

The increasing volatility shown by the Supply Chain Volatility index indicates which strategy will become increasingly important? A. Lean B. Kanban C. Just in time D. Agile

D. Agile

Which supply chain strategy is needed in less predictable environments? A. Kanban B. Lean C. Just in time D. Agile

D. Agile

Big data is "bigger" because of which factor? A. More volume B. More variety C. More velocity D. All of the above E. None of the above

D. All of the above

Which of the following metrics can be used in evaluating SKU inventory performance? A. Inventory turns B. GMROI C. Periods of supply D. All of the above

D. All of the above

The secondary effect of an increase in inventory may be an increase in ROA if the increase in inventory causes an increases in sales and profit. The increase in the sales and profit could be a result of which of the following? A. Fewer stock outs B. Fewer lost sales C. Increase in sales of impulse items with inventory dependent demand D. All of these

D. All of these

For a data scientist to be most effective, he or she should have __________. A. Narrow analytical skills and high domain knowledge B. Only broad analytical skills C. Narrow analytical skills and low domain knowledge D. Broad analytical skills and high domain knowledge

D. Broad analytical skills and high domain knowledge

Reliability in the 4 R's of supply chain competition is defined as being able to __________. A. Address problems consistently in the same way every time B. Deal with unexpected disruptions in the supply chain C. None of these D. Consistently execute an activity or process at a target level of performance

D. Consistently execute an activity or process at a target level of performance

One approach to estimating the cost of a stockout per unit of lost sale is to calculate an estimate of the ____________. A. Probability B. Net present value C. None of these D. Expected value E. Internal rate of return

D. Expected value

One of the direct effects of investing in third party logistics provider is a reduction of __________ costs and an increase in __________ costs. A. Variable; fixed B. Total landed; fixed C. Variable; total landed D. Fixed; variable

D. Fixed; variable

By spending more money on transportation, one can most likely I: Increase the lead time II: Decrease the lead time III: Increase the variability of lead time IV: Decrease the variability of lead time A. I only B. II only C. I & III D. II & IV

D. II & IV

Perpetual inventory is: A. Initial inventory + Amount received - amount on shelf B. Initial inventory + Amount received + amount sold C. Initial inventory + Amount purchased + amount on shelf D. Initial inventory + Amount received - amount sold

D. Initial inventory + Amount received - amount sold

Unit sales divided by average inventory is called __________. A. ROA B. Stock outs C. GMROI D. Inventory turns

D. Inventory turns

Relationship in the 4 R's of supply chain competition is defined as being able to __________. A. Change logistics and supply chain management activities quickly B. Deliver products to customers that are demanding them C. Consistently execute an activity or process at a target level of performance D. Manage the connections, the interactions, and communication, and maintain trust

D. Manage the connections, the interactions, and communication, and maintain trust

As products move through their lifecycles more quickly, which type of flexibility becomes more important? A. Variety B. Customization C. Volume D. New Product

D. New Product

Which of the following are measures of reliability of a logistics process? A. Coefficient of Variation B. Mean C. Standard Deviation D. Standard deviation and Coefficient of variation E. Median

D. Standard deviation and Coefficient of variation

When calculating inventory turns, it is acceptable to use __________ in the numerator and __________ in the denominator. A. Unit sales; average unit inventory B. Cost of goods sold; average inventory cost C. Sales; cost of goods sold D. Unit sales; average unit inventory & cost of goods sold; average inventory cost E. All of these

D. Unit sales; average unit inventory & cost of goods sold; average inventory cost

Which is a new way to accomplish business process re-engineering? A. Total Quality Management B. Lean/Six sigma C. Continuous improvement D. Using big data and predictive analytics

D. Using big data and predictive analytics

Which companies collaboratively pioneered the sharing of POS data? A. Walmart and J.B. Hunt B. J.B. Hunt and P&G C. Walmart and Sears D. Walmart and P&G

D. Walmart and P&G

Economies of scale is defined as a reduction in __________ when volumes are increased. A. Total cost B. Average margin per unit C. Average market price per unit D. Average cost per unit

D.. Average cost per unit

Which of the following products would you expect to require the most safety stock? Product A: Standard Deviation of Sales = 25, Standard Deviation of Lead Time = 19 Product B: Standard Deviation of Sales = 29, Standard Deviation of Lead Time = 25 Product C: Standard Deviation of Sales = 15, Standard Deviation of Lead Time = 20 Product D: Standard Deviation of Sales 25, Standard Deviation of Lead Time = 20 A. Product D B. Product C C. Product A or C D. Product A E. Product B

E. Product B

A store manager says: "I shoot for a 95% service level." What the manager means is that: A. None of these are correct B. She wants no more than 5% of products to be returned to the store C. All of these are correct D. She wants 95% of customers to have a pleasant experience in the store E. When the customer wants a product, she wants it to be there at least 95% of the time

E. When the customer wants a product, she wants it to be there at least 95% of the time