Deck 4: Supply Chain Management

Question 1

Which of the following is not one of the four major causes of the bullwhip effect?

A) Demand forecast updating
B) Order batching
C) Price fluctuations
D) The business cycle
E) Rationing and shortage gaming

Answer 1

D

Question 2

An organization's supply chain is facilitated by:

A) dedicated people.
B) an information system.
C) specific vendors.
D) specific customers
E) government regulations.

Answer 2

B

Question 3

Typically a manufacturer will have more direct contact with which type of supplier?

A) Tier one supplier
B) Tier two supplier
C) Tier three supplier
D) Tier four supplier
E) Tier five supplier

Answer 3

A:

Question 4

What is an extension of an intranet to include suppliers and customers called?

A) supply chain net
B) supernet
C) supranet
D) extranet
E) intranet++

Question 5

Which of the following is open to the most users?

A) an intranet
B) an extranet
C) a LAN
D) a WAN
E) the Internet

Question 6

Which term refers to inaccurate or distorted demand information created in the supply chain?

A) Battle axe effect
B) Cobra effect
C) Bullwhip effect
D) Lasso effect
E) Whirlpool effect

Question 7

Consider a packaged milk products supply chain. A lumber company provides wood to a paper mill, who supplies cardboard to a container manufacturer, who supplies containers to the milk products manufacturer. The lumber company is:

A) a tier one supplier.
B) a tier two supplier.
C) a tier three supplier.
D) a tier four supplier.
E) not in the supply chain.

Question 8

Price fluctuations follow all but which of the following marketing promotions?

A) Advertising
B) Price discounts
C) Quantity discounts
D) Coupons
E) Rebates

Question 9

Which of the following typically represents the beginning of a supply chain?

A) Wholesalers
B) Retailers
C) Manufacturers
D) External suppliers
E) Inspectors

Question 10

Which of the following is not a typical result of the bullwhip effect?

A) Absenteeism
B) Lost revenues
C) Ineffective transportation use
D) Poor customer service levels
E) Misused manufacturing capacity

Question 11

Online retailing, or B2C, has shifted:

A) the cost of doing business.
B) the power from the suppliers to the consumers.
C) the way the internet works.
D) internal corporate power to the IT department.
E) corporate funding levels to the IT department.

Question 12

The time between order placement and the receipt of goods is called ___________________.

A) receipt time
B) lead time
C) allowance time
D) processing time
E) waiting time

Question 13

Net marketplaces are designed to:

A) bring together only internal resources.
B) bring together limited external resources.
C) bring together significant number of purchasing firms.
D) limit the number of daily transactions.
E) limit cyber security risks.

Question 14

Which of the following is not a remedy for the bullwhip effect?

A) Allocate units based on past demand
B) Price stabilization
C) Base forecasts on demand coming from the immediate downstream customer
D) Eliminate order batching
E) Information sharing

Question 15

Supply chain management is the vital business function which does not coordinate and manage:

A) linking suppliers.
B) transporters.
C) human resource interviews.
D) internal departments.
E) third-party companies.

Question 16

What is a network internal to an organization called?

A) supernet
B) internet
C) intranet
D) supranet
E) internalnet

Question 17

Service organization supply chains are:

A) similar to manufacturing organizations.
B) not similar to service organizations.
C) very unique.
D) not a consideration when planning a service organization.
E) universally government regulated.

Question 18

Collection of point-of-sale (POS) information is most useful for which bullwhip effect remedy?

A) Allocate units based on past demand
B) Price stabilization
C) Fill orders based on a set percentage
D) Eliminate order batching
E) Information sharing

Question 19

Due to globalization, which of the following are not some commonly shared ocean shipping logistical characteristics?

A) goods arrive in larger quantities
B) greater break-bulk activity is required
C) crossdocking is required
D) typically have higher inventories
E) longer port times occur

Question 20

When do rationing and shortage gaming occur?

A) Supply exceeds demand.
B) Demand exceeds supply.
C) Government contracts are awarded.
D) Transportation workers go on strike.
E) Marginal revenue exceeds marginal cost.

Question 21

Going beyond a basic partnership, an expanded partnership between a firm and its supplier implies:

A) mutual respect
B) honesty
C) trust
D) open and frequent communications
E) a commitment to helping each other succeed

Question 22

Which of the following is not a positive attribute of Multiple Suppliers?

A) provides a greater flexibility of volume
B) eliminates a supplier's dependence on the purchaser
C) probability of assured supply is better
D) deliveries can be schedule more easily
E) allows for testing of new suppliers without jeopardizing the flow of materials

Question 23

What refers to owning or controlling sources of raw materials and components?

A) Backward integration
B) Horizontal integration
C) Encapsulating integration
D) Forward integration
E) Subsuming integration

Question 24

According to the financial calculations of the make-or-buy decision, if we need fewer units than the indifference point, then which option should we definitely choose?

A) Make
B) Buy
C) The option with the lower variable costs
D) The option with the higher variable costs
E) It is not profitable to choose either option.

Question 25

To perform the financial calculations of the make-or-buy decision, which costs are needed?

A) Fixed and variable
B) Fixed and average
C) Variable and average
D) Variable only
E) Average only

Question 26

According to several studies, what are the three most important criteria for selecting suppliers?

A) Price, quality, fast delivery
B) Quality, fast delivery, on-time delivery
C) Price, flexibility, on-time delivery
D) Quality, flexibility, fast delivery
E) Price, quality, on-time delivery

Question 27

According to the textbook, the two kinds of partnerships are basic and what?

A) Expanded
B) Enhanced
C) Enlarged
D) Elaborated
E) Evolved

Question 28

A constant concern within purchasing departments is the issue of ethics in managing _______________.

A) customers
B) web sites
C) inventory
D) suppliers
E) entry-level employees

Question 29

Which activity appears to be most frequently outsourced by large companies?

A) Purchasing
B) Marketing
C) Finance
D) Accounting
E) Manufacturing

Question 30

What are the Institute for Supply Management's principles of ethical supply chain management conduct?

A) objectivity always, loyalty to your organization, and faith in your profession
B) objectivity always, justice to those with whom you deal, and faith in your profession
C) objectivity always, justice to those with whom you deal, and loyalty to your organization
D) objectivity always, know the law, and justice to those with whom you deal
E) loyalty to your organization, justice to those with whom you deal, and faith in your profession

Question 31

Purchasing is typically responsible for:

A) initiating purchasing requests.
B) physically inventorying all received materials.
C) developing the engineering specifications.
D) analyzing the make-buy decision.
E) monitoring supplier performance.

Question 32

What does the textbook define as the three most critical factors in successful partnering?

A) Impact, mission, vision
B) Impact, intimacy, vision
C) Contracting, mission, vision
D) Contracting, intimacy, mission
E) Contracting, impact, intimacy

Question 33

What is the common term for a process of developing a long-term relationship with a supplier based on mutual trust, shared vision, shared information, and shared risks?

A) Marrying
B) Cohabitating
C) Sharing
D) Partnering
E) Diversifying

Question 34

What term refers to processes or activities that are completed in-house?

A) Ownsource
B) Insource
C) Homesource
D) Outsource
E) Supplysource

Question 35

What term refers to attaining levels of productivity and competitiveness that are not possible through normal supplier relationships?

A) Intimacy
B) Vision
C) Impact
D) Power
E) Collusion

Question 36

A higher level of vertical integration implies:

A) more outsourcing and more insourcing.
B) less outsourcing.
C) more insourcing.
D) less insourcing.
E) less outsourcing and more insourcing.

Question 37

A recent change in supply chain management has been the:

A) need for faster computers.
B) green supply chain management requirement.
C) requirement for advanced educational degrees.
D) increased government regulation.
E) need for smaller ocean transportation methods.

Question 38

In general, what comprises the bulk of the cost of goods sold?

A) Overhead
B) Materials
C) Electricity
D) Depreciation
E) Labor

Question 39

The quantity that equates the cost of making a product to the cost of buying the product is generally called what?

A) Neutrality point
B) Point of equality
C) Indifference point
D) Point of optimality
E) No such point can exist.

Question 40

What term refers to processes or activities that are completed by suppliers?

A) Vendorsource
B) Insource
C) Homesource
D) Outsource
E) Supplysource

Question 41

_________________ crossdocking is the receiving and consolidating of inbound supplies to support just-in-time manufacturing.

A) Warehouse
B) Manufacturing
C) Distributor
D) Transportation
E) Retail

Question 42

Crossdocking ____________________________________________________.

A) eliminates the receiving and shipping functions of a distribution warehouse while still performing its storage and order picking functions
B) eliminates the receiving and storage functions of a distribution warehouse while still performing its shipping and order picking functions
C) eliminates the storage and shipping functions of a distribution warehouse while still performing its order picking and receiving functions
D) eliminates the receiving and order picking functions of a distribution warehouse while still performing its storage and shipping functions
E) eliminates the storage and order picking functions of a distribution warehouse while still performing its receiving and shipping functions

Question 43

Leveraging core competence is about sharing:

A) workers
B) knowledge
C) machines
D) expenses
E) financial hedges

Question 44

What type of warehouse is used for long-term storage?

A) Customized
B) Strategic
C) General
D) Distribution
E) Tactical

Question 45

Crossdocking allows the retailer to replace ______________ with information and coordination.

A) trucks
B) buildings
C) inventory
D) truck loaders
E) conveyor belts

Question 46

What type of warehouse is used for short-term storage, consolidation, and product mixing?

A) Customized
B) Strategic
C) General
D) Distribution
E) Tactical

Question 47

Early supplier involvement refers to the involvement of critical suppliers for what?

A) Strategic planning
B) Assembly line design
C) Speedy delivery planning
D) Selection of new suppliers
E) New product design

Question 48

What is the process whereby shipments are transferred directly from inbound trailers to outbound trailers?

A) crossdocking
B) directdocking
C) nodocking
D) simuldocking
E) transferdocking

Question 49

What does TL stand for?

A) Transportation lead time
B) Transportation logistics
C) Trucking line
D) Trucking life
E) Truckload (quantity)

Question 50

What does ESI stand for?

A) Easy supplier integration
B) Early stage initiation
C) Every supplier's important
D) Early supplier involvement
E) Engaged supply initiative

Question 51

What term refers to the mission or objectives of a partnership?

A) Impact
B) Intimacy
C) Dream
D) Conception
E) Vision

Question 52

Which of the following is not considered to be a characteristic of partnership relations?

A) Have a long-term orientation
B) Are strategic in nature
C) Are "arms-length" in nature
D) Share a common vision
E) Share short- and long-term plans

Question 53

The discussion in the textbook implies that on-line retailing has shifted power in the supply chain the most to which group?

A) Suppliers
B) Manufacturers
C) Distributors
D) Retailers
E) Individual consumers

Question 54

_________________ crossdocking is the consolidating of shipments from LTL and small package industries to gain economies of scale.

A) Warehouse
B) Manufacturing
C) Distributor
D) Transportation
E) Retail

Question 55

What is the throughput of Fingerhut's warehouse in St. Cloud, MN?

A) 30,000 items per minute
B) 30,000 items per hour
C) 30,000 items per day
D) 30,000 items per week
E) 30,000 items per month

Question 56

What does EDI stand for?

A) Easy data interchange
B) Electronic door interface
C) Electronic detachable interface
D) Elementary data integration
E) Electronic data interchange

Question 57

Which type of technology provides "point-of-sale information?"

A) Automatic guided vehicles (AGV)
B) Automatic storage and retrieval systems (ASRS)
C) Barcode scanners
D) Flexible manufacturing systems (FMS)
E) Computer aided design/computer aided manufacturing (CAD/CAM)

Question 58

What term refers to the working relationship between partners?

A) Impact
B) Vision
C) Familiarity
D) Intimacy
E) Proximity

Question 59

Some warehouses provide product mixing. This is referred to as:

A) reduced value-added service for customers.
B) value-added service for customers.
C) mix and match capability.
D) correcting earlier mistakes in shipping.
E) storage warehouse functions.

Question 60

What do studies suggest are the three sources of impact?

A) Reduce waste, leverage core competence, and create new opportunities
B) Provide quantity discounts, reduce waste, and create new opportunities
C) Create detailed contracts, reduce waste, and create new opportunities
D) Create detailed contracts, leverage core competence, and reduce waste
E) Create detailed contracts, leverage core competence, and create new opportunities

Question 61

Rationing and shortage gaming occur when supply exceeds demand.

Question 62

Supply chain velocity refers to

A) how fast the transportation vendor is
B) how fast the company pays the supply chain vendors
C) how fast the purchasing department responds to a request
D) the speed at which a product moves through a pipeline from the manufacturer to the customer
E) the speed at which the warehouse is able to crossdock a shipment

Question 63

A possible remedy for the bullwhip effect is to base forecasts on demand coming from the immediate downstream customer.

Question 64

A tier one supplier is always more important than a tier two supplier.

Question 65

Location managers are typically responsible for managing the movement of products between locations.

Question 66

Which of the following is not an argument in favor of having a single supplier?

A) Quantity discounts may be achieved.
B) Partnering becomes more possible.
C) Consistency of input materials is achieved.
D) Probability of assured supply is better.
E) Deliveries can be scheduled more easily.

Question 67

If supply chain A has more levels than supply chain B, then the bullwhip effect will likely impact supply chain B more than supply chain A.

Question 68

Which of the following is a "buyer-side," typically industry-specific solution?

A) automated order entry systems
B) electronic data interchange
C) electronic storefronts
D) net marketplaces
E) advertising revenue model

Question 69

Supply chain management provides the company with a sustainable, competitive advantage.

Question 70

Which of the following is the term for "arranging the method of shipment for both incoming and outgoing products or material"?

A) TQM
B) Employee management
C) Distribution management
D) Traffic management
E) Logistics management

Question 71

Like "ABC inventory analysis," the tier one, tier two, and tier three supplier designations are based upon the annual level of purchases made with the suppliers.

Question 72

The tier one, tier two, and tier three supplier designations are based upon whom the suppliers are providing materials or services to.

Question 73

Order batching replaces lumpy demand with constant product demand.

Question 74

Which of the following is not an argument in favor of having multiple suppliers?

A) The Just-in-time philosophy can be better utilized.
B) Supplier capacity is less important.
C) Volume flexibility is obtained.
D) Risks may be spread.
E) New suppliers may more easily be tested.

Question 75

Insourcing incurs an annual fixed cost of $500,000 and a variable cost of $60 per unit. Outsourcing incurs an annual fixed cost of $750,000 and a variable cost of $20 per unit. What is the indifference point between the two alternatives?

A) 0 units
B) ?6250 units
C) 6250 units
D) 40 units
E) 12,500 units

Question 76

What is the electronic marketplace for the auto industry?

A) Carnet
B) Autoexchange
C) Covisint
D) Citroen
E) Motorint

Question 77

Manufacturers typically represent the beginning of a supply chain.

Question 78

Which B2C model does MyPoints.com utilize?

A) advertising revenue model
B) subscription revenue model
C) transaction fee model
D) sales revenue model
E) affiliate revenue model

Question 79

Companies want a supply chain that makes it possible to:

A) manage all suppliers' development costs.
B) manage and adapt to all of the business dynamics.
C) manage distribution display.
D) manage distribution outlet retail prices.
E) manage customer demands.

Question 80

Benetton is well known for the practice of assembling all white sweaters and waiting to dye them much closer to the time of sale. This is an example of what?

A) Stupidity
B) Postponement
C) Fractionalization
D) Partitioning
E) Genericness