Deck 13: Aggregate Operations Planning and Master Scheduling

Question 1

More effort needed to communicate is a disadvantage of:

A) Single-sourcing
B) Multi-sourcing

Answer 1

Multi-sourcing

Question 2

More difficult to obtain scale economies is a disadvantage of:

A) Single-sourcing
B) Multi-sourcing

Answer 2

Multi-sourcing

Question 3

'Supply chain' is a more commonly used term than 'demand chain.'

Answer 3

True

Question 4

Single-sourcing from one supplier does NOT encourage which of the following outcomes:

A) Potentially higher quality standards are possible
B) More economies of scale are possible
C) Greater confidentiality is possible
D) Contracts are easier to break off
E) Cooperation on new products and services is also easier

Question 5

Which of the following is NOT a key objective for supply chain management?

A) Satisfying end customers
B) Responding to change in an agile manner
C) Delivering goods and services efficiently
D) Reduction of suppliers

Question 6

Supply chain planning and control

A) Cooperation on new products and services is also easier
B) Contracts are easier to break off
C) More economies of scale are possible
D) Greater confidentiality is possible

Question 7

If the operation is fast to respond with flexible suppliers and the market requirements are predictable with few changes, that is:

A) Match
B) Mismatch

Question 8

The process of shortening pipeline time is called:

A) Supply chain time compression
B) Time reduction
C) Supply minimisation
D) Pipeline reduction

Question 9

Is the supply chain relationship primarily B2B, B2C, C2B or C2C for an organisation involved in such things as EDI networks.

A) B2C
B) C2C
C) C2B
D) B2B

Question 10

Is the supply chain relationship primarily B2B, B2C, C2B or C2C for an auction site, such as Ebay.com.

A) B2C
B) C2B
C) C2C
D) B2B

Question 11

If the operation is low cost and high utilisation and the market requirements are predictable with few changes, that is:

A) Match
B) Mismatch

Question 12

Disadvantages of multi-sourcing do NOT include:

A) Suppliers are likely to form a cartel and drive up prices
B) Difficulties in encouraging commitment by all suppliers
C) Developing supplier quality assurance standards is less easy
D) More vulnerable to disruption if a failure to supply occurs

Question 13

It is becoming recognised that there are few benefits to be gained from the management of whole
supply chains.

Question 14

The Forrester effect shows that inaccuracies increase further upstream in the supply chain.

Question 15

More vulnerable to disruption if a failure to supply occurs is a disadvantage of:

A) Single-sourcing
B) Multi-sourcing

Question 16

If the operation is low cost and high utilisation and the market requirements are for high variety and many changes, that is:

A) Match
B) Mismatch

Question 17

Reduction in inventory is an important part of reducing supply chain pipeline time.

Question 18

One of the great advantages of EDI is that it usually means that greater quantities of goods can be
ordered with more confidence that they will meet the needs of the operation.

Question 19

Is the supply chain relationship primarily B2B, B2C, C2B or C2C for a book retailer, such as Amazon.com.

A) C2C
B) C2B
C) B2B
D) B2C

Question 20

Is the supply chain relationship primarily B2B, B2C, C2B or C2C for an organisation inviting offers for such things as airline tickets.

A) C2B
B) B2C
C) B2B
D) C2C

Question 21

What term is commonly used to indicate that the management of the logistics chain is outsourced to a specialist logistics company?

A) Outsource distribution
B) Logistics outsourcing
C) Distribution outsourcing
D) Third-party logistics

Question 22

The concept of lean supply can often be in conflict with moving towards agile supply chains.

Question 23

Which of the following incorporates the management of inventory and stores?

A) Materials management
B) Physical distribution management
C) Purchasing and supply management
D) Logistics

Question 24

In a supply chain for products with low profit margins, the focus is likely to fall on:

A) The increase in variety
B) The number of deliveries to end customers
C) The reduction of inventory
D) The reduction of suppliers

Question 25

Which of the following is considered a criticism of lean supply?

A) It can make supply chains too rigid.
B) It can increases inventories.
C) It can slow processes.
D) It can increase cost of stock holding.

Question 26

The well-accepted term for managing the activity of supplying immediate customers is:

A) Key account management
B) Materials management
C) Physical distribution management
D) Logistics

Question 27

The term used to describe the flexibility to deal with demand volatility in a supply chain is
responsiveness.

Question 28

With the increase of direct delivery to consumers, because of such innovations as Internet-based
retailing, the logistics chain could extend through to the end customer.

Question 29

What is the term used to refer to the management of the flow of materials and information through the immediate supply chain?

A) Physical distribution management
B) Supply management
C) Logistics
D) Materials management

Question 30

The implementation of e-procurement always reduces 'maverick' spending.

Question 31

Expediters are said to 'chase' the order, an activity that adds no value to the transaction and is now
seen as a failure to improve the root cause of lateness.

Question 32

In a supply chain for products with low profit margins, it is important to ensure products move
down the chain quickly rather than building up as inventory.

Question 33

Which if the following is NOT an element of the lean supply chain approach?

A) Continuous improvement of supplier performance
B) An emphasis on push planning and control
C) Transparency in terms of costs, quality and delivery schedules
D) Carefully defined supply level agreements

Question 34

Supplier quality assurance (SQA) programmes monitor and improve the levels of supplier quality, partly by assessing capability in terms of:

A) Procedures, training, equipment and price
B) Price, systems and delivery speed
C) Procedures, equipment, delivery speed and price
D) Systems, training, procedures and equipment

Question 35

Historically, which objective has been emphasised in purchasing theory and practice?

A) Speed
B) Dependability
C) Quality
D) Price

Question 36

Materials management is a broader term than supply chain management.

Question 37

Which function is generally responsible for creating contracts with suppliers to buy in materials and services?

A) Marketing
B) Accounts
C) Purchasing
D) Logistics

Question 38

Typically, the volume and value of purchases of materials and services are decreasing as
organisations bring more operations in-house.

Question 39

Where demand is uncertain, a key purchasing objective will be:

A) Dependable delivery
B) Low price
C) High quality
D) Fast delivery

Question 40

Oil for machinery is an example of a direct good.

Question 41

In retail operations, the purchasing task is frequently combined with the sales and physical distribution task. This term is called:

A) Materials management
B) Merchandising
C) Retail supply management
D) Retail procurement

Question 42

Which of the following is an element of the lean supply chain approach?

A) Continuous improvement of supplier performance.
B) Breakthrough improvement of supplier performance.
C) Emphasis on pull planning and control.
D) Transparency in terms of costs, quality and delivery schedules.

Question 43

The larger the level of material costs as a proportion of total costs, the greater effect on profitability
of a reduction in material costs.

Question 44

Supply chains need to be sufficiently flexible to cope with demand uncertainty and the disruption that often stems from it. The term used to describe this type of responsive flexibility is:

A) Robustness
B) Agility
C) Flexibility
D) Responsiveness

Question 45

The lean supply chain approach often includes breakthrough improvement of supplier
performance.

Question 46

One of the major supply chain developments of recent years has been the expansion in the proportion of products that businesses are willing to source from outside their country. This is
Called:

A) Global sourcing
B) Overseas procurement
C) External sourcing
D) International purchasing