Question 1

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

Accepted Answer

A) True 
 B)False  False

Question 2

Why is channel assembly popular in the personal computer industry?

Accepted Answer

Channel assembly is popular in the personal computer industry because of better market response with less investment.This is possible because the late-stage assembly and customization is a natural part of a rapidly changing industry.With this strategy,finished-goods inventory is reduced because units are built to a shorter,more accurate forecast.

Question 3

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

Accepted Answer

Logistics management

Question 4

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

Accepted Answer

distortion

Question 5

Identify the ten opportunities in managing the integrated supply chain.

Accepted Answer

(1)accurate "pull" data; (2)lot size red

Question 6

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?

Accepted Answer

A) outsourcing 
B) dual-sourcing 
C) cross-sourcing 
D) backup-sourcing 
E) parallel-sourcing 
A) outsourcing 
B) dual-sourcing 
C) cross-sourcing 
D) backup-sourcing 
E) parallel-sourcing

Question 7

Among which of the following industries are purchasing costs the LOWEST percentage of sales?

Accepted Answer

A) automobile 
B) petroleum 
C) restaurants 
D) lumber 
E) chemical 
A) automobile 
B) petroleum 
C) restaurants 
D) lumber 
E) chemical

Question 8

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?

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 9

Identify and describe briefly the six sourcing strategies.

Accepted Answer

1.With the many suppliers strategy,a sup

Question 10

Which of the following best describes vertical integration?

Accepted Answer

A) sell products to a supplier or a distributor 
B) develop the ability to produce products that complement the original product 
C) produce goods or services previously purchased 
D) develop the ability to produce the specified good more efficiently than before 
E) build long-term partnerships with a few suppliers 
A) sell products to a supplier or a distributor 
B) develop the ability to produce products that complement the original product 
C) produce goods or services previously purchased 
D) develop the ability to produce the specified good more efficiently than before 
E) build long-term partnerships with a few suppliers

Question 11

The transfer of some of what are traditional internal activities and resources of a firm to outside vendors is:

Accepted Answer

A) a standard use of the make-or-buy decision. 
B) not allowed by the ethics code of the Supply Management Institute. 
C) offshoring. 
D) outsourcing. 
E) keiretsu. 
A) a standard use of the make-or-buy decision. 
B) not allowed by the ethics code of the Supply Management Institute. 
C) offshoring. 
D) outsourcing. 
E) keiretsu.

Question 12

Which of the following is an advantage of the postponement technique?

Accepted Answer

A) reduction in automation 
B) early customization of the product 
C) better quality of the product 
D) reduction in training costs 
E) reduction in inventory investment 
A) reduction in automation 
B) early customization of the product 
C) better quality of the product 
D) reduction in training costs 
E) reduction in inventory investment

Question 13

Local optimization is a supply-chain complication best described as:

Accepted Answer

A) optimizing one's local area without full knowledge of supply chain needs. 
B) obtaining very high production efficiency in a decentralized supply chain. 
C) the prerequisite of global optimization. 
D) the result of supply chains built on suppliers with compatible corporate cultures. 
E) the opposite of the bullwhip effect. 
A) optimizing one's local area without full knowledge of supply chain needs. 
B) obtaining very high production efficiency in a decentralized supply chain. 
C) the prerequisite of global optimization. 
D) the result of supply chains built on suppliers with compatible corporate cultures. 
E) the opposite of the bullwhip effect.

Question 14

As the number of facilities increases,total logistics costs tend to follow a curve that first rises,then declines.

Accepted Answer

A) True 
 B)False

Question 15

The supply chain management opportunity called postponement involves delaying deliveries to avoid accumulation of inventory at the customer's site.

Accepted Answer

A) True 
 B)False

Question 16

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

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 17

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,what is the inventory turnover?

Accepted Answer

A) 12.50 
B) 10.00 
C) 42.00 
D) 4.16 
E) 20.00 
A) 12.50 
B) 10.00 
C) 42.00 
D) 4.16 
E) 20.00

Question 18

Logistics management can provide a competitive advantage through improved customer service.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Once revenue and total logistics costs are considered together,the optimal number of facilities in a distribution network may decrease compared to the optimal number of facilities based on total logistics costs only.

Accepted Answer

A) True 
 B)False

Exam 11: Supply Chain Management

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

Why is channel assembly popular in the personal computer industry?

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

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

Identify the ten opportunities in managing the integrated supply chain.

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?

Among which of the following industries are purchasing costs the LOWEST percentage of sales?

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?

Identify and describe briefly the six sourcing strategies.

Which of the following best describes vertical integration?

The transfer of some of what are traditional internal activities and resources of a firm to outside vendors is:

Which of the following is an advantage of the postponement technique?

Local optimization is a supply-chain complication best described as:

As the number of facilities increases,total logistics costs tend to follow a curve that first rises,then declines.

The supply chain management opportunity called postponement involves delaying deliveries to avoid accumulation of inventory at the customer's site.

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

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,what is the inventory turnover?

Logistics management can provide a competitive advantage through improved customer service.

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

Once revenue and total logistics costs are considered together,the optimal number of facilities in a distribution network may decrease compared to the optimal number of facilities based on total logistics costs only.

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 and Sop

Material Requirements Planning Mrpand ERP

Short-Term Scheduling

Lean Operations

Maintenance and Reliability

Sustainability in the Supply Chain

Statistical Process Control

Capacity and Constraint Management

Supply Chain Management Analytics

Decision-Making Tools

Linear Programming

Transportation Models

Waiting-Line Models

Learning Curves

Simulation

Filters