Exam 12: Supply Chain Management

________ involves delaying any modifications or customization to the product as long as possible in the production process.

Vertical integration,whether forward or backward,requires the firm to become more specialized.

Which of the following is a primary supplier selection criterion for a firm pursuing a differentiation strategy?

Consider a firm with an annual net income of $20 million,revenue of $60 million and cost of goods sold of $25 million.If the balance sheet amounts show $2 million of inventory and $500,000 of property,plant & equipment,how many weeks of supply does the firm hold?

All EXCEPT which of the following are "opportunities" in managing the integrated supply chain?

When using the low-cost strategy for supply chain management,a firm should use buffer stocks to ensure speedy supply.

Identify and describe briefly the six sourcing strategies.

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 production 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).

Designing distribution networks to meet customer expectations suggests three criteria: (1)rapid response,(2)cost,and (3)service.

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

Describe a reverse auction (also known as a Dutch auction).

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

________ describes using one supplier for a component and a second supplier for another component,where each supplier acts as a backup for the other.

Because service firms do not acquire goods and services externally,their supply chain management issues are insignificant.

The objective of the make-or-buy decision is to help identify the products and services that can be obtained externally.

A fast-food retailer that acquired a spice manufacturer would be practicing backward integration.

________ is an approach that seeks efficiency of operations through the integration of all material acquisition,movement,and storage activities.

Describe vendor-managed inventory (VMI).How is it related to outsourcing? Cite an example from your experiences as a shopper.

How are outsourcing and vertical integration related? Can a single firm successfully do both?

Which of the following describes using one supplier for a component and a second supplier for another component,where each supplier acts as a backup for the other?