Question 1

Quick response is clearly advantageous to

Accepted Answer

A) a distributor in the supply chain. 
B) a retailer in the supply chain. 
C) a manufacturer in the supply chain. 
D) every step in the supply chain. 
A) a distributor in the supply chain. 
B) a retailer in the supply chain. 
C) a manufacturer in the supply chain. 
D) every step in the supply chain.

Question 2

Describe managerial levers to increase profitability within a supply chain.

Accepted Answer

Improved forecasting: Use better market

Question 3

Describe the two key factors that influence the optimal level of product availability within a supply chain.

Accepted Answer

The two key factors that influence the o

Question 4

Whether the optimal level of availability is high or low depends on where a particular company believes they can maximize profits.

Accepted Answer

A) True 
 B)False

Question 5

Scenario 13.3 - We Have No Bananas
Weekly demand at the Banana Stand is 200 bananas with a standard deviation of 50.The replenishment lead time is 3 weeks from the plantation in Ecuador.The Banana Stand manager orders 1000 bananas when the inventory drops to 600.Each banana costs $0.50.The holding cost the Banana Stand incurs is 40%.
-Use Scenario 13.3 to answer the question.Suppose the Banana Stand decides to cut their lot size in half.What is the new cost of understocking?

Accepted Answer

A) $0.02 
B) $0.03 
C) $0.04 
D) $0.05 
A) $0.02 
B) $0.03 
C) $0.04 
D) $0.05

Question 6

A retailer places an order for the new Bagpipe 2018™ from the supplier and takes note of the demand pattern.They use this knowledge of the demand to place a second order of Bagpipe 2018 from the supplier.This results in

Accepted Answer

A) a larger total order placed than when they could order only once per bagpipe season. 
B) a slightly larger average overstock to be disposed of at the end of bagpipe season than when they could order only once. 
C) a lower profit than when they could order only once during bagpipe season. 
D) no overstocked bagpipes at the end of the first order period. 
A) a larger total order placed than when they could order only once per bagpipe season. 
B) a slightly larger average overstock to be disposed of at the end of bagpipe season than when they could order only once. 
C) a lower profit than when they could order only once during bagpipe season. 
D) no overstocked bagpipes at the end of the first order period.

Question 7

Faced with a 3000 taco capacity constraint,what is the optimal number of chicken tacos to prepare?

Accepted Answer

A) 2758 
B) 1736 
C) 1264 
D) 2500 
A) 2758 
B) 1736 
C) 1264 
D) 2500

Question 8

In product-based tailored sourcing,

Accepted Answer

A) low-volume products with uncertain demand are obtained from a flexible source. 
B) high-volume products with less demand uncertainty are obtained from an efficient source. 
C) high-volume products with less demand uncertainty are obtained from a flexible source. 
D) A and B only 
A) low-volume products with uncertain demand are obtained from a flexible source. 
B) high-volume products with less demand uncertainty are obtained from an efficient source. 
C) high-volume products with less demand uncertainty are obtained from a flexible source. 
D) A and B only

Question 9

The taco stand manager decides to make exactly the same quantity of fish tacos as chicken tacos.If time and capacity are not an issue,and none of the other parameters in the scenario are changed,what would the retail price of chicken tacos need to be to make the optimal order quantities identical?

Accepted Answer

A) $5.68 
B) $5.92 
C) $6.21 
D) $6.47 
A) $5.68 
B) $5.92 
C) $6.21 
D) $6.47

Question 10

Tailored postponement allows a firm to increase its profitability by only postponing the uncertain part of the demand and producing the predictable part at a lower cost without postponement.

Accepted Answer

A) True 
 B)False

Question 11

Responsive strategies like postponement are most effective when demand uncertainty is high.

Accepted Answer

A) True 
 B)False

Question 12

The value of postponement decreases as

Accepted Answer

A) uncertainty increases or demand is positively correlated among end products. 
B) uncertainty increases or demand is negatively correlated among end products. 
C) uncertainty decreases or demand is negatively correlated among end products. 
D) uncertainty decreases or demand is positively correlated among end products. 
A) uncertainty increases or demand is positively correlated among end products. 
B) uncertainty increases or demand is negatively correlated among end products. 
C) uncertainty decreases or demand is negatively correlated among end products. 
D) uncertainty decreases or demand is positively correlated among end products.

Question 13

A supply chain needs to achieve a balance between the level of availability and the cost of inventory that maximizes supply chain revenues.

Accepted Answer

A) True 
 B)False

Question 14

Scenario 13.2 - Fish or Chicken
The taco stand in the atrium of the new College of Business building carried two items,fish tacos and chicken tacos.The fish tacos sell for $15 and are made out of $5 of ingredients and the chicken tacos sell for $10 and are made out of $4 of ingredients.Some days the taco stand owner has only chicken at his disposal,so he makes nothing but chicken tacos,and some days the opposite is true and he makes only fish tacos.Thus,he is able to estimate demand for chicken tacos at 2500 per day with a standard deviation of 600 and the demand for fish tacos at 2000 per day with a standard deviation of 500.Any fish or chicken tacos that do not sell at the end of the day can be sold for $1 each as bait.On days when both proteins are available,the taco stand manager prefers to make a few of each kind.All tacos are made in his home kitchen and then transported to campus.Due to time constraints and the capacity of his pickup truck bed,he is limited to beginning each day with only 3000 tacos.
-Suppose the taco stand manager could wake up a little earlier and borrow his buddy's full size pickup to transport tacos to campus.If time and capacity were not an issue,what would the expected profit be per day?

Accepted Answer

A) $29,443 
B) $31,382 
C) $35,000 
D) $30,657 
A) $29,443 
B) $31,382 
C) $35,000 
D) $30,657

Question 15

When a firm uses production with postponement to satisfy a part of its demand with the rest being satisfied without postponement,it is using

Accepted Answer

A) adjustable postponement. 
B) flexible postponement. 
C) managed postponement. 
D) tailored postponement. 
A) adjustable postponement. 
B) flexible postponement. 
C) managed postponement. 
D) tailored postponement.

Question 16

As the number of order cycles per season decreases,the leftover inventory at the end of the season increases.

Accepted Answer

A) True 
 B)False

Question 17

The production cost without postponement is usually higher than the production cost with postponement.

Accepted Answer

A) True 
 B)False

Question 18

In volume-based tailored sourcing,

Accepted Answer

A) the predictable part of a product's demand is produced at an efficient facility. 
B) the uncertain portion is produced at an efficient facility. 
C) the predictable part of a product's demand is produced at a flexible facility. 
D) the predictable part of a product's demand is outsourced. 
A) the predictable part of a product's demand is produced at an efficient facility. 
B) the uncertain portion is produced at an efficient facility. 
C) the predictable part of a product's demand is produced at a flexible facility. 
D) the predictable part of a product's demand is outsourced.

Question 19

A supply chain needs to achieve a balance between the level of availability and the cost of inventory that

Accepted Answer

A) maximizes supply chain revenues. 
B) minimizes supply chain costs. 
C) maximizes supply chain profitability. 
D) maximizes supply chain availability. 
A) maximizes supply chain revenues. 
B) minimizes supply chain costs. 
C) maximizes supply chain profitability. 
D) maximizes supply chain availability.

Question 20

Postponement may reduce overall profits for a firm if a single product contributes the majority of the demand because

Accepted Answer

A) the increased manufacturing expense due to postponement outweighs the small benefit the aggregation provides in this case for the dominant product. 
B) the decreased manufacturing expense due to aggregation outweighs the small benefit the postponement provides in this case for the dominant product. 
C) the decreased manufacturing expense due to postponement outweighs the small benefit the aggregation provides in this case for the dominant product. 
D) the increased manufacturing expense due to aggregation outweighs the small benefit the postponement provides in this case for the dominant product. 
A) the increased manufacturing expense due to postponement outweighs the small benefit the aggregation provides in this case for the dominant product. 
B) the decreased manufacturing expense due to aggregation outweighs the small benefit the postponement provides in this case for the dominant product. 
C) the decreased manufacturing expense due to postponement outweighs the small benefit the aggregation provides in this case for the dominant product. 
D) the increased manufacturing expense due to aggregation outweighs the small benefit the postponement provides in this case for the dominant product.

Quick response is clearly advantageous to

Describe managerial levers to increase profitability within a supply chain.

Describe the two key factors that influence the optimal level of product availability within a supply chain.

Whether the optimal level of availability is high or low depends on where a particular company believes they can maximize profits.

A retailer places an order for the new Bagpipe 2018™ from the supplier and takes note of the demand pattern.They use this knowledge of the demand to place a second order of Bagpipe 2018 from the supplier.This results in

Faced with a 3000 taco capacity constraint,what is the optimal number of chicken tacos to prepare?

In product-based tailored sourcing,

The taco stand manager decides to make exactly the same quantity of fish tacos as chicken tacos.If time and capacity are not an issue,and none of the other parameters in the scenario are changed,what would the retail price of chicken tacos need to be to make the optimal order quantities identical?

Tailored postponement allows a firm to increase its profitability by only postponing the uncertain part of the demand and producing the predictable part at a lower cost without postponement.

Responsive strategies like postponement are most effective when demand uncertainty is high.

The value of postponement decreases as

A supply chain needs to achieve a balance between the level of availability and the cost of inventory that maximizes supply chain revenues.

When a firm uses production with postponement to satisfy a part of its demand with the rest being satisfied without postponement,it is using

As the number of order cycles per season decreases,the leftover inventory at the end of the season increases.

The production cost without postponement is usually higher than the production cost with postponement.

In volume-based tailored sourcing,

A supply chain needs to achieve a balance between the level of availability and the cost of inventory that

Postponement may reduce overall profits for a firm if a single product contributes the majority of the demand because

Understanding the Supply Chain

Achieving Strategic Fit in a Supply Chain

Supply Chain Drivers and Metrics

Designing Distribution Networks and Applications to E-Business

Network Design in the Supply Chain

Designing Global Supply Chain Networks

Demand Forecasting in a Supply Chain

Aggregate Planning in a Supply Chain

Sales and Operations Planning: Planning Supply and Demand

Coordination in a Supply Chain

Managing Economies of Scale in a Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Transportation in a Supply Chain

Sourcing Decisions in a Supply Chain

Pricing and Revenue Management in a Supply Chain

Sustainability and the Supply Chain

Filters

Exam 13: Linking Product Availability to Profits

Quick response is clearly advantageous to

Describe managerial levers to increase profitability within a supply chain.

Describe the two key factors that influence the optimal level of product availability within a supply chain.

Whether the optimal level of availability is high or low depends on where a particular company believes they can maximize profits.

A retailer places an order for the new Bagpipe 2018™ from the supplier and takes note of the demand pattern.They use this knowledge of the demand to place a second order of Bagpipe 2018 from the supplier.This results in

Faced with a 3000 taco capacity constraint,what is the optimal number of chicken tacos to prepare?

In product-based tailored sourcing,

The taco stand manager decides to make exactly the same quantity of fish tacos as chicken tacos.If time and capacity are not an issue,and none of the other parameters in the scenario are changed,what would the retail price of chicken tacos need to be to make the optimal order quantities identical?

Tailored postponement allows a firm to increase its profitability by only postponing the uncertain part of the demand and producing the predictable part at a lower cost without postponement.

Responsive strategies like postponement are most effective when demand uncertainty is high.

The value of postponement decreases as

A supply chain needs to achieve a balance between the level of availability and the cost of inventory that maximizes supply chain revenues.

When a firm uses production with postponement to satisfy a part of its demand with the rest being satisfied without postponement,it is using

As the number of order cycles per season decreases,the leftover inventory at the end of the season increases.

The production cost without postponement is usually higher than the production cost with postponement.

In volume-based tailored sourcing,

A supply chain needs to achieve a balance between the level of availability and the cost of inventory that

Postponement may reduce overall profits for a firm if a single product contributes the majority of the demand because

Understanding the Supply Chain

Achieving Strategic Fit in a Supply Chain

Supply Chain Drivers and Metrics

Designing Distribution Networks and Applications to E-Business

Network Design in the Supply Chain

Designing Global Supply Chain Networks

Demand Forecasting in a Supply Chain

Aggregate Planning in a Supply Chain

Sales and Operations Planning: Planning Supply and Demand

Coordination in a Supply Chain

Managing Economies of Scale in a Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Transportation in a Supply Chain

Sourcing Decisions in a Supply Chain

Pricing and Revenue Management in a Supply Chain

Sustainability and the Supply Chain

Filters