Exam 12: Supply Chain Design

Selling expenses, fixed expenses and depreciation are all considered operating expenses.

Shipments of Product Q from a plant to a wholesaler are made in lots of 400. The wholesaler's average demand for Q is 150 units per week. Lead time from plant to wholesaler is 5 weeks. The wholesaler pays for the shipments when they leave the plant. The plant has proposed several new lead time and lot size options to the wholesaler (see table below). If the wholesaler's goal is to minimize total cycle plus pipeline inventories, which option should the wholesaler select?

A firm may choose to use members of the distribution channel as if they were assembly stations in the factory. Such an approach is known as:

Figure 12.1 This figure represents the impact of supply chain performance on total costs. -Refer to Figure 12.1. Which is the best statement if a company simultaneously moves from point A to point B and from point D to point C?

A producer of medical devices makes a single model that can be customized to talk in and display any of 47 different languages. This customization is performed in one of their five regional distribution centers as firm orders are received, providing an elegant example of:

A U.S. company faced with spiraling costs in their customer care center recreated that service in Luxembourg at a fraction of the cost. This is an example of:

________, the annual sales at cost divided by the average aggregate inventory value, is the number of times a year that a firm completely replenishes its inventory.

A somewhat successful computer manufacturer makes a generic computer in five exciting colors. Once orders are received, the computer guts are encased in the customer's choice of colored case at the factory. This approach to production is known as:

The type of goods for which a responsive supply chain is appropriate are:

Weeks of inventory and inventory turns are reflected in:

Supply chain management tries to match the flow of materials, services and information with demand.

Henderson Corporation is a supplier of alloy ball bearings to auto manufacturers in Detroit. Because of the specialized manufacturing process employed, considerable work-in-process and raw material inventories are created. The average inventory levels are $1,152,000 and $2,725,000, respectively. In addition, finished goods inventory is $3,225,000, and sales (at cost) for the current year are expected to be about $24 million. The inventory turnover that Henderson Corporation is currently expecting is:

Which of the following is not identified in the text as a competitive advantage of a mass customization strategy?

Scenario 12.2 SAGE Inc. receives too many applications each year for the Global MBA program so they turn to their network of partners for assistance. Nothing in this world is free, of course, so their partners provide quotes that include a per student cost as well as a facilities cost that SAGE would pay regardless of the number of students they sent there. The costs in Rupees ( ) are elegantly summarized in the table below. -Use Scenario 12.2 to answer the question. Which student makes England a more attractive option than Wisconsin for SAGE?

It is desirable for a firm in a responsive supply chain to have:

Scenario 12.1 You currently make a part on old equipment at a cost of $50,000 per year and a variable cost of $20 / unit. You have found an outside supplier who will make the part for $15 / unit if you will pay their annual fixed costs of $200,000 / year. The following table summarizes the details of this make versus buy decision. -Use Scenario 12.1 to answer the question. What does the company save for the year by selecting the low-cost option at an annual requirement of 40,000 units?

A responsive supply chain typically has:

Which one of the following is True for supply chain management?

Scenario 12.2 SAGE Inc. receives too many applications each year for the Global MBA program so they turn to their network of partners for assistance. Nothing in this world is free, of course, so their partners provide quotes that include a per student cost as well as a facilities cost that SAGE would pay regardless of the number of students they sent there. The costs in Rupees ( ) are elegantly summarized in the table below. -Use Scenario 12.2 to answer the question. At what volume of students does Wisconsin become preferred over an Oklahoma choice?

Channel assembly is the process of using members of the distribution channel as if they were assembly stations in the factory.