Question 1

Which of the following is an opportunity for effective management in the supply chain?

Accepted Answer

A)  random "pull" data 
B)  multistage control of replenishment 
C)  the bullwhip effect 
D)  customer managed inventory 
E)  channel assembly 
A)  random "pull" data 
B)  multistage control of replenishment 
C)  the bullwhip effect 
D)  customer managed inventory 
E)  channel assembly E

Question 2

A company is about to select a vendor for the outsourcing of all of its engineering, environmental, and CAD requirements. It has identified four criteria critical to the selection. These criteria, and their importance weights, appear below. Three firms, A, C, and E, have indicated that they are interested in this position. The company has scored each of the three candidates on these criteria, using a 1-10 scale, where 10 is best. Candidate A scored 7, 7, 7, and 5 on the four criteria. Candidate C scored 9, 4, 8, and 6. Candidate E scored 5, 10, 10, and 7. Which vendor has the highest composite score?

Accepted Answer

The answer of A company is about to select a...

Question 3

A grocery chain is interested in exploring the impact effective supply-chain management would have. Suppose that for every $1 of sales 4% is profit, 50% is spent in the supply chain, and the remaining 46% is evenly divided between fixed and variable costs. If the chain can save $1 in the supply chain it would take how many dollars of increased sales to have the same increase in profit? Assume that fixed costs are fixed so that the portion of increased sales allocated to fixed costs is instead profit (27% profit margin combined now).

Accepted Answer

Suppose initially the firm sells $100 of merchandise. $50 is spent in the supply chain, $23 in fixed costs, $23 in variable costs, and $4 is profit. An increase in sales of $X would increase revenue by X but increase costs by X*(.5+.23). Therefore profit would be increased by revenue-costs= X-(.73X). Therefore .27X(profit % * sales) = 1(profit req) and solving gives X= $ 3.70 of increased sales yields an additional $1 of profit.
*Note- Problem derived from Example 1 in the text, however students are asked to do the derivation instead of simply reading a chart (the derivation process is shown in the example as support for the chart

Question 4

A furniture maker has delivered a dining set directly to the end consumer rather than to the furniture store. The furniture maker is practicing

Accepted Answer

A)  postponement 
B)  drop shipping 
C)  channel assembly 
D)  passing the buck 
E)  float reduction 
A)  postponement 
B)  drop shipping 
C)  channel assembly 
D)  passing the buck 
E)  float reduction

Question 5

__________ is developing the ability to produce goods or services previously purchased or actually buying a supplier or a distributor.

Accepted Answer

Vertical i

Question 6

Which one of the following distribution systems offers quickness and reliability when emergency supplies are needed overseas?

Accepted Answer

A)  trucking 
B)  railroads 
C)  airfreight 
D)  waterways 
E)  pipelines 
A)  trucking 
B)  railroads 
C)  airfreight 
D)  waterways 
E)  pipelines

Question 7

A rice mill in south Louisiana purchases the trucking firm that transports packaged rice to distributors. This is an example of

Accepted Answer

A)  horizontal integration 
B)  forward integration 
C)  backward integration 
D)  current transformation 
E)  keiretsu 
A)  horizontal integration 
B)  forward integration 
C)  backward integration 
D)  current transformation 
E)  keiretsu

Question 8

Drop shipment

Accepted Answer

A)  is equivalent to cross-docking 
B)  is the opposite of a blanket order 
C)  means the supplier will ship directly to the end consumer, rather than to the seller 
D)  is the same thing as keiretsu 
E)  is a good reason to find a new firm to ship your products 
A)  is equivalent to cross-docking 
B)  is the opposite of a blanket order 
C)  means the supplier will ship directly to the end consumer, rather than to the seller 
D)  is the same thing as keiretsu 
E)  is a good reason to find a new firm to ship your products

Question 9

Outsourcing refers to transferring a firm's activities that have traditionally been internal to external suppliers.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not a condition that favors the success of vertical integration?

Accepted Answer

A)  availability of capital 
B)  availability of managerial talent 
C)  required demand 
D)  small market share 
E)  All of the above favor the success of vertical integration. 
A)  availability of capital 
B)  availability of managerial talent 
C)  required demand 
D)  small market share 
E)  All of the above favor the success of vertical integration.

Question 11

The three major variations of online catalogs are

Accepted Answer

A)  catalogs by vendors, catalogs by intermediaries, and exchanges provided by buyers 
B)  EDI, ERP, and ASN 
C)  cost-based, market-based, and competitive bidding 
D)  drop shipping, channel assembly, and postponement 
E)  all auction-based 
A)  catalogs by vendors, catalogs by intermediaries, and exchanges provided by buyers 
B)  EDI, ERP, and ASN 
C)  cost-based, market-based, and competitive bidding 
D)  drop shipping, channel assembly, and postponement 
E)  all auction-based

Question 12

Identify the advantages and disadvantages of using the few suppliers approach.

Accepted Answer

Advantages: long-term suppliers better u

Question 13

Local optimization, incentives, and large lots all contribute to __________ about what is really occurring in the supply chain.

Accepted Answer

distortion

Question 14

With the many-suppliers strategy, the order usually goes to the supplier that offers the best quality.

Accepted Answer

A) True 
 B)False

Question 15

What advantages may result from effectively outsourcing the logistics function to a third party?

Accepted Answer

Driving down invento

Question 16

Because the supply chain has become so electronic and automated, opportunities for unethical behavior have been greatly reduced.

Accepted Answer

A) True 
 B)False

Question 17

Transferring to external vendors a firm's activities that have traditionally been internal is known as __________.

Accepted Answer

The answer of Transferring to external vendors a firm's activities...

Question 18

Which distribution system is the fastest growing mode of shipping?

Accepted Answer

A)  railroads 
B)  trucks 
C)  airfreight 
D)  waterways 
E)  pipelines 
A)  railroads 
B)  trucks 
C)  airfreight 
D)  waterways 
E)  pipelines

Question 19

Identify some technological advances that can serve to improve logistics management and also improve shipping security.

Accepted Answer

Several technological advances can serve

Question 20

Supply-chain management faces additional challenges, such as those related to quality production and distribution systems, when companies enter growing global markets.

Accepted Answer

A) True 
 B)False

Exam 11: Supply-Chain Management

Which of the following is an opportunity for effective management in the supply chain?

A furniture maker has delivered a dining set directly to the end consumer rather than to the furniture store. The furniture maker is practicing

__________ is developing the ability to produce goods or services previously purchased or actually buying a supplier or a distributor.

Which one of the following distribution systems offers quickness and reliability when emergency supplies are needed overseas?

A rice mill in south Louisiana purchases the trucking firm that transports packaged rice to distributors. This is an example of

Drop shipment

Outsourcing refers to transferring a firm's activities that have traditionally been internal to external suppliers.

Which of the following is not a condition that favors the success of vertical integration?

The three major variations of online catalogs are

Identify the advantages and disadvantages of using the few suppliers approach.

Local optimization, incentives, and large lots all contribute to __________ about what is really occurring in the supply chain.

With the many-suppliers strategy, the order usually goes to the supplier that offers the best quality.

What advantages may result from effectively outsourcing the logistics function to a third party?

Because the supply chain has become so electronic and automated, opportunities for unethical behavior have been greatly reduced.

Transferring to external vendors a firm's activities that have traditionally been internal is known as __________.

Which distribution system is the fastest growing mode of shipping?

Identify some technological advances that can serve to improve logistics management and also improve shipping security.

Supply-chain management faces additional challenges, such as those related to quality production and distribution systems, when companies enter growing global markets.

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Process Strategy

Location Strategies

Layout Strategies

Human Resources, Job Design, and Work Measurement

Inventory Management

Aggregate Planning

Material Requirements Planning Mrp and Erp

Short-Term Scheduling

Just-In-Time and Lean Options

Maintenance and Reliability

Statistical Tools for Managers

Acceptance Sampling

The Simplex Method of Linear Programming

The Modi and Vam Methods of Solving Transportation Problems

Vehicle Routing and Scheduling

Managing Quality

Process Strategy

Supply-Chain Management

Vehicle Routing and Scheduling

Filters