Question 1

In _______ firms can significantly reduce the safety inventory they require by physically aggregation inventories in one location

Accepted Answer

A) Inventory aggregation 
B) Insurance aggregation 
C) Demand aggregation 
D) None of the above. A

Question 2

________ allows the supplier and the producer to work together when designing components for the final product.

Accepted Answer

A) Segment collaboration 
B) Design collaboration 
C) Demand collaboration 
D) Supply collaboration B

Question 3

Why should a firm design a transportation network that can handle electronic commerce?

Accepted Answer

A) Due to the rising demand of home delivery. 
B) Due to the decreasing demand of e-shops. 
C) Due to rising demand for inbound logistics. 
D) All of the above. A

Question 4

To protect against external transportation costs, ____________ include any cost associated with terminals, airport gates, and labor that are incurred whether vehicles are in operation or not.

Accepted Answer

A) Fixed operating costs 
B) Fixed variable costs 
C) Fixed labor costs 
D) Fixed instrumental costs

Question 5

Ensuring appropriate coordination across regions and business units maximizes economies of scale in ___________.

Accepted Answer

A) Selling 
B) Advertising 
C) Purchasing 
D) Campaigning

Question 6

One of the ways to manage supply and shipment is through ________ transportation, which is the use of more than one method of transportation to move a shipment to its destination.

Accepted Answer

A) Intermodal 
B) Outermodal 
C) Intramodal 
D) None of the above.

Question 7

A __________ specifies parameters covering the buyer and supplier relationship. This protects the business from both external and internal sources.

Accepted Answer

A) Supply contract 
B) Demand contract 
C) Demand and supply contract 
D) None of the above.

Question 8

_________ will generate more opportunities for savings than two parties working independently.

Accepted Answer

A) Signing contracts 
B) Building long-term relationships with clients 
C) Giving discounts 
D) Ending long-term relationships with clients

Question 9

_______ is a sourcing strategy from the purchasing group that is likely to be narrow and focus on purchase price.

Accepted Answer

A) Using information infrastructure 
B) Using multifunctional teams 
C) Utilizing added utility 
D) None of the above.

Question 10

Managers should consider an appropriate combination of _________ and __________ to meet their needs.

Accepted Answer

A) CRM and SRM 
B) Logistics and carriers 
C) Company owned and outsourced transportation 
D) Demand and supply

Question 11

In a ________, the retail chain structures its transportation network to have all shipments come directly from supplier to retail stores.

Accepted Answer

A) Drop shipping network 
B) Direct shipping network 
C) Chinese shipping network 
D) All of the above.

Question 12

An effective sourcing strategy should make ________ its sole objective.

Accepted Answer

A) Inventory reduction 
B) Price reduction 
C) Labor reduction 
D) Information delivery

Question 13

Supply contracts should be designed to facilitate desirable supply chain outcomes and minimize actions that hurt _________ performance of supply.

Accepted Answer

A) Internal 
B) External 
C) Both 
D) None of the above.

Question 14

Software is crucial to helping managers do which of the following task/s easily?

Accepted Answer

A) Transportation planning 
B) Modal selection 
C) Building delivery routes and schedules 
D) All of the above.

Question 15

______ start(s) with a trip obtained by using a route sequencing procedure and improves the trip to shorten its length.

Accepted Answer

A) Transportation Sequences 
B) Transit Logistics 
C) Route Improvement Procedures 
D) None of the above.

Question 16

The most common cause for suboptimal supply chain performance is _________.

Accepted Answer

A) Single marginalization 
B) Double marginalization 
C) Zero margin 
D) None of the above.

Question 17

One of the factors affecting the shipper's decision is the _________ that needs to be paid to various carriers for transporting products to customers.

Accepted Answer

A) Carrier cost 
B) Transportation cost 
C) Shipment cost 
D) Insurance cost

Exam 10: Managing Supply