OPMT 303 Chapter 16

A supply chain has the following information. Supplier. factory. wholesaler. retailer Inventory in days. 30 50 40 25 Accounts receivable in days. 20 45 30 45 Accounts payable in days. 40 35 50 47 Sourcing unit cost $ 10 $ 18 $ 82 $ 107 Added unit cost $ 5 $ 45 $ 20 $ 45 Sales unit price $ 18 $ 82 $ 107 $ 161 What is the total delivered cost across the supply chain? A. $125 B. $115 C. $107 D. None of these choices are correct.

A. $125 Total delivered cost = 10 + 5 + 45 + 20 + 45 = 125.

Which of the following is NOT true concerning lean systems and supply chain performance? A. Setup time reduction has minimal impact on the overall supply chain. B. Once lot sizes are reduced, inventory levels in the supply chain are also reduced. C. The presence of lean systems indicates stronger supply chain performance. D. Lean thinking has added to supply chain risk in some cases.

A. Setup time reduction has minimal impact on the overall supply chain.

Which of the following is NOT true of vertical integration? A. leads to greater flexibility to changing technology B. can result in a loss of economies of scale C. helps achieve control of the supply chain D. reap the profits of the supplier or distributor when there is an attractive return from the investment

A. leads to greater flexibility to changing technology

Which of the following statements concerning supply chain risk is true? A. Most companies have a clear understanding of how resilient their supply chains are to failure. B. Both the chances of disruption occurrence and the magnitude of loss must be considered. C. Focusing attention on the 20% of suppliers who incur 80% of the cost is a recommended approach. D. All of these choices are true.

B. Both the chances of disruption occurrence and the magnitude of loss must be considered.

Which of the following is NOT a form of structural change of the supply chain? A. forward and backward integration B. creating cross-functional teams C. major process simplification D. outsourcing logistics to a third party

B. creating cross-functional teams

The level of supply chain resilience is determined by the ability to A. prepare, detect, and mitigate disruptions. B. plan, detect, and act on disruptions. C. diagnose, act, and stop disruptions. D. plan, see, and secure disruptions.

B. plan, detect, and act on disruptions.

Which of the following increases the resilience of supply chains in the face of a disruption? A. Reducing inventory levels. B. Reducing the number of suppliers. C. Reducing disruption detection time. D. All of these choices are correct.

C. Reducing disruption detection time.

Which of the following statements is NOT true regarding supply chain operations? A. All elements of the supply chain are interconnected and dependent on each other. B. Demand changes by the end user can create a bullwhip effect in the supply chain. C. With perfect information at all levels of the supply chain, there will not be a bullwhip effect. D. Time lags in the supply chain serve to create fluctuations in orders and inventories.

C. With perfect information at all levels of the supply chain, there will not be a bullwhip effect.

Omni Channel Marketing is NOT which of the following? A. a means to interact with customers through multiple channels B. customers can interact with companies using a variety of devices C. marketing to customers via the Internet D. meeting customers where they are in a seamless and transparent way

C. marketing to customers via the Internet

Which of the following is true regarding supply chain sustainability? A. It is as important to meet the needs of future generations as it is to meet today's needs. B. It includes providing safe working conditions for employees. C. It includes financial responsibility to stockholders. D. All of these choices are correct.

D. All of these choices are correct.

Which of the following statements is true regarding the supply chain dynamics? A. As a highly interactive system, decisions in each part of the supply chain affect the other parts. B. The idea of safe harbor causes increased orders and inventory magnification. C. "Inventory panic" is when managers reduce inventories that are perceived to be too high. D. All of these choices are correct.

D. All of these choices are correct.

Which of the following does the supply chain operations reference (SCOR) model NOT include? A. make B. deliver C. return D. All of these choices are included.

D. All of these choices are included.

A supply chain has the following information. Supplier. factory. wholesaler. retailer Inventory in days. 30 50 40 25 Accounts receivable in days. 20 45 30 45 Accounts payable in days. 40 35 50 47 Sourcing unit cost $ 10 $ 18 $ 82 $ 107 Added unit cost $ 5 $ 45 $ 20 $ 45 Sales unit price $ 18 $ 82 $ 107 $ 161 Which of the four entities has the smallest cash-to-cash cycle time? A. Retail B. Wholesale C. Factory D. Supplier

D. Supplier Supplier = 30 + 20 − 40 = 10 which is the smallest.

Assume a company has $700,000 worth of inventory and averages $10,000 per day in cost of sales. Also assume it takes 30 days for the average customer to pay off its invoice to this company and it takes 120 days for the company to pay for the materials supplied by its suppliers. What is the company's average cash-to-cash cycle time? A. 20 days B. 40 days C. −10 days D. −20 days

D.-20 Days C2C cycle time = (700,000/10,000) + 30 − 120 = negative 20 days.

The flow of materials from upstream nodes into a firm is called

Physical supply

To reduce supply chain risk, a company should

buy the same critical item from two or more suppliers

The four measures individual firms in a supply chain are

cost, quality, flexibility, delivery.

The average cash-to-cash cycle is defined as

days in inventory + days in account receivable − days in accounts payable.