ISDS 3115 Ch 11 Conceptual
Which of the following could reduce distribution risk? A. careful selection, monitoring and effective contracts with penalties B. secure IT systems C. cross-country diversification D. use multiple suppliers
A. careful selection, monitoring and effective contracts with penalties
Which of the following statements is NOT generally an implication stemming from an increase in the number of facilities? A. decreased total logistics cost B. increased facility costs C. increased customer satisfaction D. quicker response
A. decreased total logistics cost
A supply chain ends with A. suppliers. B. manufacturers. C. a satisfied customer. D.distributors.
C. a satisfied customer.
When determining the optimal number of facilities, logistics-related costs do NOT usually include which of the following costs? A. facility B. transportation C. purchasing D. inventory
C. 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.
Which of the following statements is true regarding cross-sourcing? A. 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. B. Cross-sourcing enhances technological skills. C. Cross-sourcing describes suppliers who become part of a company coalition. D. Cross-sourcing develops the ability to produce goods or services previously purchased or actually buying a supplier or distributor.
A. 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.
Which of the following statements is NOT true regarding the bullwhip effect? A. 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. B. Inaccurate information results in distortions and fluctuations, causing what is known as the bullwhip effect. C. Bullwhip fluctuations in the supply chain increase the costs associated with inventory, transportation, shipping and receiving. D. Bullwhip fluctuations in the supply chain decrease customer service and profitability.
A. 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.
What is a long-term purchase commitment to a supplier for items that are to be delivered against short-term releases to ship? A. blanket order B. postponement C. drop shipping D. advanced shipping notice
A. blanket order
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. does not play a role in multimodal shipping. C. is the least used transportation mode for manufacturing goods. D. is one of the least flexible transportation modes.
A. is increasingly using computers to manage its operations.
What is transferring a firm's activities that have traditionally been internal to external suppliers? A. outsourcing B. keiretsu network C. vertical integration D. make-or-buy
A. outsourcing
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. drop shipping. C. the bullwhip effect. D. vendor-managed inventory.
A. postponement.
Three criteria for designing distribution networks to meet customer expectations are: A. rapid response, product choice, and service. B. rapid response, low cost, and service. C. low cost, product choice and service. D. low cost, rapid response and product choice.
A. rapid response, product choice, and service.
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. vendor-managed inventory. B. postponement. C. single stage control of replenishment. D. e-procurement.
A. vendor-managed inventory.
Which of the following strategies is part collaboration, part purchasing from few suppliers, and part vertical integration? A.keiretsu networks B. joint ventures C. virtual companies D. horizontal integration
A.keiretsu networks
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. Devote more resources to the supplier selection and negotiation process. B. Increase the duplication of tasks. C. Maintain professional control over the purchasing process. D. Leverage purchase volume for better pricing
B. Increase the duplication of tasks.
Which organization has developed principles and standards to be used as guidelines for ethical behavior? A. Institute for Procurement Management B. Institute for Supply Management C. Institute for Vendor Management D. Institute for Purchasing Management
B. Institute for Supply Management
Which of the following is NOT true about reverse logistics as compared to foward logistics? A. Distribution costs are less directly visible. B. Speed is often very important. C. Pricing is dependent on many factors. D. Forecasting is more uncertain.
B. Speed is often very important.
What is a supply chain designed to optimize both forward and reverse flows? A. reverse-loop supply chain B. closed-loop supply chain C. bullwhip-loop supply chain D. open-loop supply chain
B. closed-loop supply chain
Which negotiation strategy bases price on a published, auction, or index price? A. supply-based price model B. market-based price model C. competitive bidding D. cost-based price model
B. market-based price model
Which of the following industries has the highest supply chain cost as a percentage of sales? A. metals B. petroleum C. automobile D. restaurants
B. petroleum
Supply chain managers outsource logistics to meet three goals: A. drive down inventory investment, improve delivery reliability and speed, and provide better market response. B. drive down inventory investment, lower delivery costs, and provide better market response. C. drive down inventory investment, lower delivery costs, and improve delivery reliability and speed. D. lower delivery costs, improve delivery reliability and speed, and provide better market response.
C. drive down inventory investment, lower delivery costs, and improve delivery reliability and speed.
The advantage of having many potential suppliers is their willingness to A. provide innovations. B. provide technical expertise. C. offer lower prices in the short term. D. participate in JIT.
C. offer lower prices in the short term.
What is developing the ability to produce goods or services previously purchased or actually buying a supplier or a distributor? A. outsourcing B. virtual companies C. vertical integration D. horizontal integration
C. vertical integration
Prior to embarking on supply chain design, operations managers must first consider A. what kind of distribution network to have. B. how to select suppliers. C. how to manage supply chain inventory. D. "make-or-buy" and outsourcing decisions.
D. "make-or-buy" and outsourcing decisions.
Which of the following statements is NOT true? A. Supply chain management describes the coordination of all supply chain activities, starting with raw materials, and ending with a satisfied customer. B. The objective of supply chain management is to coordinate activities within the supply chain to maximize the supply chain's competitive advantage and benefits to the ultimate consumer. C. A supply chain includes suppliers; manufacturers and/or service providers; and distributors, wholesalers, and/or retailers who deliver the product and/or service to the final customer. D. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting.
D. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting.
Which of the following statements is NOT true regarding channel assembly? A. Channel assembly treats distributors more as manufacturing partners than as distributors. B. Channel assembly postpones final assembly of a product so the distribution channel can assemble it. C. Channel assembly represents one way to implement postponement. 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.
With regard to the cost-based price model negotiation strategy, which of the following is true? A. Potential suppliers each submit quotations as to price, delivery, and so on. B. Prices float based on what the customer is willing to pay. C. Prices are based in some way upon market standards agreed to by both supplier and purchaser. D. Prices are based upon supplier costs.
D. Prices are based upon supplier costs.
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
The advantage of having few suppliers is to A. take advantage of diseconomies of scale. B. look for short-term attributes. C. pursue low cost. D. form a long-term relationship.
D. form a long-term relationship.
Which of the following mitigation tactics could reduce economic risk? A. subcontractors on retainer B. multiple transportation modes and warehouses C. franchising and licensing D. purchasing contracts that address price fluctuations
D. purchasing contracts that address price fluctuations
Which of the following is the first stage of supplier selection? A. contracting B. negotiations C. supplier development D. supplier evaluation
D. supplier evaluation