Op. Mangt. Ch. 11 & Ch. 11 Supplement

vendor-managed inventory.

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. e-procurement. C. postponement. D. vendor-managed inventory.

is a​ fast-growing mode of shipping.

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

reducing worker travel time.

Efficiency in a warehouse is primarily improved by A. reducing worker travel time. B. creating wider aisles. C. using taller shelves. D. increasing order quantities.

a more expensive shipper and lower holding costs.

Faster shipping usually means A. a more expensive shipper and higher holding costs. B. a more expensive shipper and lower holding costs. C. a less expensive shipper and higher holding costs. D. a less expensive shipper and lower holding costs.

lowest value of TRIPS divided byBLOCKS

Given a set of items needing to be stored in a warehouse in which the number of daily trips and blocks of storage space needed are both known for all​ items, the item with which of the following should be placed furthest from the​ dock? A. lowest value of TRIPS​ × BLOCKS B. highest value of TRIPS​ ÷ BLOCKS C. lowest value of TRIPSdivided byBLOCKS D. highest value of TRIPS​ × BLOCKS

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

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 improve delivery reliability and speed. C. lower delivery​ costs, improve delivery reliability and​ speed, and provide better market response. D. drive down inventory​ investment, lower delivery​ costs, and provide better market response.

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 true regarding​ cross-sourcing? A. Cross-sourcing describes suppliers who become part of a company coalition. B. 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. C. ​Cross-sourcing enhances technological skills. D. Cross-sourcing develops the ability to produce goods or services previously purchased or actually buying a supplier or distributor.

a satisfied customer.

a supply chain ends with A. manufacturers. B. suppliers. C. a satisfied customer. D. distributors.

inventory days of supply​ + days of receivables outstanding minus days of payables outstanding

How is​ cash-to-cash cycle time​ computed? A. days of receivables outstanding​ + days of payables outstanding minus inventory days of supply B. inventory days of supply​ + days of receivables outstanding​ + days of payables outstanding C. inventory days of supply​ + days of payables outstanding minus days of receivables outstanding D. inventory days of supply​ + days of receivables outstanding minus days of payables outstanding

cost of goods sold​ / inventory investment.

Inventory turnover is equal to A. cost of goods sold​ / inventory investment. B. (total assets​ / total inventory ​investment)times100. C. (total inventory investment​ / total ​assets)times100. D. inventory investment​ / (annual cost of goods sold​ / 52​ weeks).

"make-or-buy" and outsourcing decisions.

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

form a​ long-term relationship.

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

offer lower prices in the short term.

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

cost of goods sold.

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. inventory turnover. D. cost of goods sold.

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

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

rapid​ response, product​ choice, and service.

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

is increasingly using computers to manage its operations.

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

Japanese earthquake and tsunami

What event in 2011 caused manufacturers in several industries worldwide to wait 6 months or longer to see their supply chains working normally​ again? A. German tornado B. U.S. hurricane C. Japanese earthquake and tsunami D. Chinese flood

blanket order

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. blanket order D. drop shipping

vertical integration

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

outsourcing

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

allocate orders based on forecasts

Which of the following is NOT a remedy for the bullwhip​ effect? A. channel coordination B. allocate orders based on forecasts C. information sharing D. price stabilization

shared demand information

Which of the following is NOT one of the major causes of the bullwhip​ effect? A. price fluctuations B. order batching C. shared demand information D. demand forecast errors

Speed is often very important.

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.

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

Which of the following is TRUE regarding the bullwhip effect​ measure? A. Variance amplification is present if the bullwhip measure is greater than zero. B. A smoothing or dampening scenario exists as orders move up the supply chain towards suppliers if the bullwhip measure is greater than one. C. Variance amplification is present if the bullwhip measure is greater than one. D. No amplification is present if the bullwhip measure is equal to zero.

supplier evaluation

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

purchasing contracts that address price fluctuations

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

decreased total logistics cost

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 customer satisfaction C. increased facility costs D. quicker response

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

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

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

Which of the following statements is NOT​ true? A Finding the optimal number of facilities represents a critical and static decision. B. ​Top-notch supply chain performance requires good downstream​ management, just as it does good upstream management. 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

A​ closed-loop supply chain is a designed to optimize only reverse flows.

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

The factor weighting approach does not involve subjective judgment.

Which of the following statements is NOT​ true? A. The factor weighting model adds objectivity to decision making. B. The factor weighting approach can help firms identify the features that are important to them. C. The factor weighting approach does not involve subjective judgment. D. The factor weighting approach can help firms evaluate potential suppliers.

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? A. 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. B. 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. C. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting. D. Supply chain management describes the coordination of all supply chain​ activities, starting with raw​ materials, and ending with a satisfied customer.

All suppliers will be disrupted simultaneously if either a​ super-event occurs or a​ super-event does not occur but a​ unique-event occurs for all of the suppliers.

Which of the following statements is​ TRUE? A. All suppliers will be disrupted simultaneously if either a​ super-event occurs or a​ super-event does not occur but a​ unique-event occurs for all of the suppliers. B. To compute the probability of all n suppliers being disrupted​ simultaneously, we assume that the probabilities are all dependent on each other. C. As the probability of a​ super-event decreases, the advantage of utilizing multiple suppliers diminishes. D. Large probabilities of a unique event decrease the likelihood of needing more suppliers.

When multiple suppliers are​ used, having geographically dispersed suppliers could lessen the probability of all failing simultaneously.

Which of the following statements is​ TRUE? A. When multiple suppliers are​ used, having geographically centralized suppliers could lessen the probability of all failing simultaneously. B. It is usually less risky to use single suppliers rather than multiple suppliers. C. When multiple suppliers are​ used, having geographically dispersed suppliers could lessen the probability of all failing simultaneously. D. The risk mitigation effectiveness of using multiple suppliers has nothing to do with the probability of a​ super-event occurring.

Institute for Supply Management

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