Question 1

An increase in forecast accuracy increases both the overstocked and understocked quantity and decreases a firm's profits.

Accepted Answer

A) True 
 B)False

Question 2

A company with multiple products that chooses to delay product differentiation until closer to the point of sale is using

Accepted Answer

A) tailored sourcing. 
B) quick response. 
C) postponement. 
D) improved forecasting. 
A) tailored sourcing. 
B) quick response. 
C) postponement. 
D) improved forecasting.

Question 3

Which of the following would be a strategy to decrease the margin lost in a stockout?

Accepted Answer

A) Arranging for backup sourcing 
B) Discarding the unused material 
C) Selling unsold product to an outlet store 
D) Reducing the level of cycle inventory 
A) Arranging for backup sourcing 
B) Discarding the unused material 
C) Selling unsold product to an outlet store 
D) Reducing the level of cycle inventory

Question 4

If quick response allows multiple orders in the season,

Accepted Answer

A) the manufacturer sells less to the retailer in the short term. 
B) the manufacturer sells more to the retailer in the short term. 
C) the manufacturer gains more supply chain surplus than the retailer. 
D) the retailer must initially expend more effort for the same return. 
A) the manufacturer sells less to the retailer in the short term. 
B) the manufacturer sells more to the retailer in the short term. 
C) the manufacturer gains more supply chain surplus than the retailer. 
D) the retailer must initially expend more effort for the same return.

Question 5

Discuss the advantages and disadvantages of quick response.

Accepted Answer

There are three important consequences o

Question 6

As lead times decrease,supply chain managers are able to

Accepted Answer

A) better match supply with demand. 
B) better match demand with supply. 
C) increase supply chain cost. 
D) decrease product availability. 
A) better match supply with demand. 
B) better match demand with supply. 
C) increase supply chain cost. 
D) decrease product availability.

Question 7

Scenario 13.1 - Nefarious
The tenured professor routinely led student groups on factory tours in exotic locales,and one popular destination was an island south of Miami.The students enjoyed this happy little island and the professor liked it because he could supplement his income by bringing back a few boxes souvenirs he could sell to his friends.The souvenirs cost the professor $125 a box and he sells them for $290 a box.Souvenirs that dry out due to age can be sold for $80.Experience has shown that the demand for boxes of these souvenirs has a mean of 80 with a standard deviation of 20.
-Naturally,the professor will purchase the optimal number of boxes.(He's had a course or two in supply chain management and knows this model well. )If each of his friends purchases only one box,how many friends will he turn away because he runs out of boxes of souvenirs?

Accepted Answer

A) 5 
B) 3 
C) 2 
D) 1 
A) 5 
B) 3 
C) 2 
D) 1

Question 8

Quick response results in

Accepted Answer

A) the manufacturer making a lower profit in the long term if all else is unchanged. 
B) the manufacturer making a lower profit in the short term if all else is unchanged. 
C) the retailer making a lower profit in the short term if all else is unchanged. 
D) the distributor making a lower profit in the short term if all else is unchanged. 
A) the manufacturer making a lower profit in the long term if all else is unchanged. 
B) the manufacturer making a lower profit in the short term if all else is unchanged. 
C) the retailer making a lower profit in the short term if all else is unchanged. 
D) the distributor making a lower profit in the short term if all else is unchanged.

Question 9

________ may reduce overall profits for a firm if a single product contributes the majority of the demand.

Accepted Answer

A) Shortened forecasting window 
B) Quick response 
C) Postponement 
D) Tailored sourcing 
A) Shortened forecasting window 
B) Quick response 
C) Postponement 
D) Tailored sourcing

Question 10

A supply chain can use a high level of product availability to improve its responsiveness and attract customers.

Accepted Answer

A) True 
 B)False

Question 11

As the standard deviation of forecast error increases,

Accepted Answer

A) expected profit increases and expected understock increases. 
B) expected profit increases and expected understock decreases. 
C) expected profit decreases and expected understock increases. 
D) expected profit decreases and expected understock decreases. 
A) expected profit increases and expected understock increases. 
B) expected profit increases and expected understock decreases. 
C) expected profit decreases and expected understock increases. 
D) expected profit decreases and expected understock decreases.

Question 12

The cost of understocking is denoted by Cu and is the margin lost by a firm for each lost sale because there is no inventory on hand.

Accepted Answer

A) True 
 B)False

Question 13

Faced with a 3000 taco capacity constraint,what is the profit resulting from an optimal mix of fish and chicken tacos?

Accepted Answer

A) $22,577 
B) $25,619 
C) $24,667 
D) $23,580 
A) $22,577 
B) $25,619 
C) $24,667 
D) $23,580

Question 14

An increase in forecast accuracy

Accepted Answer

A) decreases both the overstocked and understocked quantity and decreases a firm's profits. 
B) decreases both the overstocked and understocked quantity and increases a firm's profits. 
C) increases both the overstocked and understocked quantity and decreases a firm's profits. 
D) increases both the overstocked and understocked quantity and increases a firm's profits. 
A) decreases both the overstocked and understocked quantity and decreases a firm's profits. 
B) decreases both the overstocked and understocked quantity and increases a firm's profits. 
C) increases both the overstocked and understocked quantity and decreases a firm's profits. 
D) increases both the overstocked and understocked quantity and increases a firm's profits.

An increase in forecast accuracy increases both the overstocked and understocked quantity and decreases a firm's profits.

A company with multiple products that chooses to delay product differentiation until closer to the point of sale is using

Which of the following would be a strategy to decrease the margin lost in a stockout?

If quick response allows multiple orders in the season,

Discuss the advantages and disadvantages of quick response.

As lead times decrease,supply chain managers are able to

Quick response results in

________ may reduce overall profits for a firm if a single product contributes the majority of the demand.

A supply chain can use a high level of product availability to improve its responsiveness and attract customers.

As the standard deviation of forecast error increases,

The cost of understocking is denoted by Cu and is the margin lost by a firm for each lost sale because there is no inventory on hand.

Faced with a 3000 taco capacity constraint,what is the profit resulting from an optimal mix of fish and chicken tacos?

An increase in forecast accuracy

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

An increase in forecast accuracy increases both the overstocked and understocked quantity and decreases a firm's profits.

A company with multiple products that chooses to delay product differentiation until closer to the point of sale is using

Which of the following would be a strategy to decrease the margin lost in a stockout?

If quick response allows multiple orders in the season,

Discuss the advantages and disadvantages of quick response.

As lead times decrease,supply chain managers are able to

Quick response results in

________ may reduce overall profits for a firm if a single product contributes the majority of the demand.

A supply chain can use a high level of product availability to improve its responsiveness and attract customers.

As the standard deviation of forecast error increases,

The cost of understocking is denoted by Cu and is the margin lost by a firm for each lost sale because there is no inventory on hand.

Faced with a 3000 taco capacity constraint,what is the profit resulting from an optimal mix of fish and chicken tacos?

An increase in forecast accuracy

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