ISDS 3115 Ch 11: Supply Chain Management Conceptual

Which of the following statements is NOT true?

A less expensive shipper tends to result in slower shipments and lower holding costs

Which of the following statements is NOT true?

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?

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

Which of the following statements is TRUE regarding CROSS-SOURCING?

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?

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

Which of the following statements is NOT TRUE regarding the BULLWHIP EFFECT?

The bullwhip effect occurs as orders are relayed from retails, to distributors, to wholesalers, to manufacturers, with fluctuations decreasing at each step of the sequence

Which of the following statements is NOT true?

The factor weighting approach does not involve subjective judgement

Which of the following statements is NOT one of the DIFFERENTIATION STRATEGY decisions?

Use buffer stocks to ensure speedy supply

Which of the following is TRUE regarding the BULLWHIP EFFECT measure?

Variance amplification is present if the bullwhip measure is greater than one

Which of the following statements is NOT true?

a close-loop supply chain is designed to optimize ONLY reverse flows

Prior to embarking on supply chain design, operations managers must first consider a. "make-or-buy" and outsourcing decisions b. what kind of distribution network to have c. hot to manage supply chain inventory d. how to select suppliers

a. "make-or-buy" and outsourcing decisions

A response strategy requires suppliers to be selected based primarily on a. capacity, speed, and flexibility b. being willing to share information c. product development skills d. cost

a. capacity, speed, and responsibility

Which of the following could reduce distribution risk? a. careful selection, monitoring and effective contracts b. cross-country diversification c. use multiple suppliers d. secure it systems

a. careful selection, monitoring and effective contracts with penalties

The do-it-yourselfer plucked a gallon can of base pant from the shelf of the local hardware store and handed it to Keith... This scenario is a prime example of

a. postponement

With regard to the cost-based price model negotiation strategy, which of the following is true? a. prices are based on supplier costs b. potential suppliers each submit quotations as to price, deliver, and so on c. prices float based on what the customer is willing to pay d. prices are based in some way upon market standards agreed to by both supplier and purchaser

a. prices are based on supplier costs

When determining the optimal number of facilities, logistics-related costs do NOT usually include which of the following costs? a. purchasing b. inventory c. facility d. transportation

a. purchasing

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, rapid response, and product choice d. low cost, product choice, and service

a. rapid response, product choice, and service

Which of the following is the first stage of supplier selection? a. supplier evaluation b. supplier development c. negotiations d. contracting

a. supplier evaluation

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. virtual companies d. horizontal integration

a. vertical integration

What event in 2011 caused manufacturers in several industries to wait 6 months or longer to see their supply chains working normally again? a. Chinese flood b. Japanese earthquake and tsunami c. U.S. hurricane d. German tornado

b. Japanese earthquake and tsunami

Faster shipping usually means a. a less expensive shipper and higher holding costs b. a more expensive shipper and lower holding costs c. a more expensive shipper and higher holding costs d. a less expensive shipper and lower holding costs

b. a more expensive shipper and lower holding costs

What is a supply chain designed to optimize both forward and reverse flows? a. reverse-loop supply chain b. close-looped supply chain c. bullwhip-loop supply chain d. open-loop supply chain

b. close-looped supply chain

Airfreight a. represents about 10% of the tonnage shipped in the US b. is a fast-growing mode of shipping c. is the best way to transport natural gas d. is the oldest means of freight transportation

b. is a fast-growing mode of shipping

Which of the following strategies is part collaboration, part purchasing from few suppliers, and part vertical integration? a. horizontal a. vertical integration b. keiretsu networks c. virtual companies d. joint ventures

b. keiretsu networks

Which negotiation strategy bases prices on a published, auction, or index price? a. competitive bidding b. market-based price model c. supply-based price model d. cost-based price model

b. market-based price model

The advantage of having many potential suppliers is their willingness to a. provide technical expertise b. offer lower prices in short term c. provide innovations d. participate in JIT

b. offer lower prices in short term

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

Which of the following is NOT true about REVERSE LOGISTICS as compare to FORWARD LOGISTICS? a. pricing dependent on many factors b. speed is often very important c. forecasting is more uncertain d. distribution costs are less directly visible

b. speed is often very important

Which organization has developed principles and standards to be used as guidelines for their ethical behavior? a. institute for vendor management b. institute for procurement management c. institute for supply management d. institute for purchasing management

c. Institute for Supply Management

Which of the following is NOT a REMEDY for the BULLWHIP EFFECT? a. information sharing b. price stabilization c. allocate orders based on forecasts d. channel coordination

c. allocate orders based on forecasts

Which of the following mitigation tactics is NOT designed to reduce the risk of information loss or distortion? a. training of supply chain partners on proper interpretations and use of information b. redundant databases c. alternate sourcing d. secure IT systems

c. alternate sourcing

The cost to produce the goods or services sold for a given period is referred to as a. weeks of supply b. inventory investment c. cost of goods sold d. inventory turnover

c. cost of goods sold

Which of the following statements is NOT generally an implication stemming from an increase in the number of facilities? a. increased customer satisfaction b. quicker response c. decreased total logistics cost d. increased facility costs

c. decreased total logistics cost

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 deliverabillity 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 few suppliers is to a. look for short-term attributes b. take advantage of diseconomies of scale c. form a long-term relationship d. pursue low cost

c. form a long-term relationship

Which of the following is NOT one of the benefits from a CENTRALIZED PURCHASING FUNCTION? a. devote more resources to the supplier selection and negotiation process b. maintain professional control over the purchasing process c. increase the duplication of tasks d. leverage purchase volume for better pricing

c. increase the duplication of tasks

Trucking a. is one of the least flexible transportation modes b. is the least used transportation mode for manufacturing goods c. is increasingly using computers to manage its operations d. does not play a role in multi-model shipping

c. is increasingly using computers to manage its operations

Which of the following mitigation tactics could reduce economic risk? a. subcontractors on retainer b. franchising and licensing c. purchasing contracts that address price fluctuations d. multiple transportation modes and warehouses

c. purchasing contracts that address price fluctuations

The Supply chain ends with a. distributors b. suppliers c. manufacturers d. a satisfied customer

d. a satisfied customer

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. advanced shipping notice c. drop shipping d. blanket order

d. blanket order

What is transferring a firm's activities that have traditionally been internal to external suppliers? a. make-or-buy b. vertical integration c. keiretsu network d. outsourcing

d. outsourcing

Three common measures of supply chain performances are: a. percentage invested in inventory, inventory turnover, and debt/equity ratio b. percentage invested in inventory, debt/equity ratio, and weeks of supply c. debt/equity ratio, inventory turnover, and weeks of supply d. percentage invested in inventory, inventory turnover, and weeks of supply

d. percentage invested in inventory, inventory turnover, and weeks of supply

Which of the following statements is NOT true about the FACTOR WEIGHTING TECHNIQUE?

factors can be scored using different scales

Which of the following statements is NOT one of the RESPONSE STRATEGY decisions?

gather and communicate market research data

A lawnmower assembly plant uses a variety of nuts, bolts, screws, and other fasteners in its operation..... This is an example of

vendor-managed inventory