Supply Chain Exam 4 - Chapter 11/11s

With the growth of the JIT, which of the following distribution systems has been the biggest loser?

Railroads

Which one of the following is not a supply-chain strategy?

Short-term relationship with few suppliers

Which of the following is not an advantage of the "few suppliers" concept?

Sharing trade secrets between firms

Which one of the following performance measures is not true of a world class firm?

Long lead time

Which of the following is not a concern of the supply chain?

Maintenance scheduling

Keeping a product generic as long as possible before customizing is known as __________.

postponement

The three classic types of negotiation strategies are __________.

cost-based price model, market-based price model, and competitive bidding

Which of the following best describes vertical integration?

To produce goods or services previously purchased

What type of negotiation strategy requires the supplier to open its books to the purchasers

Cost-based price mode

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

outsourcing

Which of the following supply-chain strategies creates value by allowing suppliers to have economies of scale?

Long-term partnering with a few suppliers

The approach that holds the suppliers responsible for maintaining the necessary technology, expertise, and forecasting ability plus cost, quality, and delivery competencies is __________.

many suppliers

A restaurant runs a special promotion on lobster and plans to sell twice as many lobsters as usual. When this large order is sent to the distributer, the distributer assumes the large size is a trend, not a one-time event. The distributer, therefore, places an even larger order with the lobsterman. This is the result of __________.

the bullwhip effect

What term is used to describe the outsourcing of logistics?

Third-Party Logistics

The trucking industry is establishing technologies, which let shippers and truckers find each other in order to ________

improve logistics efficiency

Last year, a vendor cost of goods sold was $8,000 and average inventory investment was $500. This vendor's ________ was 16

inventory turnover

Which of the following is an aspect of environmental risk in supply-chain management?

Political issues

The four stages of supplier selection, in order, are __________.

supplier evaluation, supplier development, negotiations, and contracting

__________________ is the technique where a manufacturer sends individual components (rather than assembled units) to a distributor.

Channel assembly

A furniture maker has delivered a dining set to the end consumer rather than to the furniture store. The furniture maker is practicing __________.

drop shipping

A disadvantage of the "few suppliers" strategy is __________.

the high cost of changing partners

Consider a firm with a 2018 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, and equipment, how many weeks of supply does the firm hold?

4.16 weeks

Which one of the following distribution systems offers quickness and reliability when emergency supplies are needed overseas?

Airfreight

Maximizing local profit or minimizing cost in a supply chain is best described as __________.

local optimization

The three major variations of online catalogs are grouped by __________.

vendors, intermediaries, and buyer exchange systems

A supply chain ends with

a satisfied customer

What is transferring a​ firm's activities that have traditionally been internal to external​ suppliers?

outsourcing

The advantage of having few suppliers is to

form a​ long-term relationship.

With regard to the​ cost-based price model negotiation​ strategy, which of the following is​ true?

Prices are based upon supplier costs.

Which of the following statements is​ TRUE?

When multiple suppliers are​ used, having geographically dispersed suppliers could lessen the probability of all failing simultaneously.

Which of the following is NOT one of the major causes of the bullwhip​ effect?

shared demand information

Which of the following statements is NOT​ true?

An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting.

Which of the following industries has the highest supply chain cost as a percentage of​ sales?

petroleum

Prior to embarking on supply chain​ design, operations managers must first consider

​"make-or-buy" and outsourcing decisions.

​What is transferring a​ firm's activities that have traditionally been internal to external​ suppliers?

outsourcing

The advantage of having many potential suppliers is their willingness to

offer lower prices in the short term.

What is developing the ability to produce goods or services previously purchased or actually buying a supplier or a​ distributor?

outsourcing

Which of the following strategies is part​ collaboration, part purchasing from few​ suppliers, and part vertical​ integration?

keiretsu networks

Which of the following could reduce distribution​ risk?

careful​ selection, monitoring and effective contracts with penalties

Which of the following mitigation tactics could reduce economic​ risk?

purchasing contracts that address price fluctuations

Which of the following mitigation tactics is NOT designed to reduce the risk of information loss or​ distortion?

alternate sourcing

Which of the following statements is true regarding​ cross-sourcing?

​Cross-sourcing uses one supplier for a component and a second supplier for another​ component, where each supplier acts as a backup for the other.

Which of the following statements is NOT true regarding the bullwhip​ effect?

The bullwhip effect occurs as order are relayed from​ retails, to​ distributors, to​ wholesalers, to​ manufacturers, with fluctuations decreasing at each step in the sequence.

What is a​ long-term purchase commitment to a supplier for items that are to be delivered against​ short-term releases to​ ship?

blanket order

A lawnmower assembly plant uses a variety of​ nuts, bolts,​ screws, and other fasteners in its operation. Its supplier delivers these items directly to the point of use on the assembly line and ensures that there are always sufficient quantities of fasteners to maintain the production schedule.

​vendor-managed inventory.

The​ do-it-yourselfer plucked a gallon can of base paint from the shelf of the local hardware store and handed it to​ Keith, the cheerful clerk at the paint counter. Their eyes met briefly and the​ do-it-yourselfer silently handed over sample​ 150C-1, Musical​ Mist, to the clerk. It was impractical to keep several gallons of every possible color on the shelves at the hardware​ store, so the paint manufacturer had created clever workaround. The workaround was a​ computer-based system that added predetermined quantities of pigments to a gallon can of base paint depending on the desired​ shade, in this​ case, Musical Mist. The hardware store now needed to stock only the base​ paint, this​ machine, and a small supply of paint pigments in order to create the thousands of colors in its catalog.

postponement

Which of the following is the first stage of supplier​ selection?

supplier evaluation

Which negotiation strategy bases price on a​ published, auction, or index​ price?

​market-based price model

With regard to the​ cost-based price model negotiation​ strategy, which of the following is​ true?

Prices are based upon supplier costs.

Which of the following is NOT one of the benefits accrued from a centralized purchasing​ function?

Increase the duplication of tasks.

Trucking

is increasingly using computers to manage its operations.

Airfreight

is a fast-growing mode of shipping

Supply chain managers outsource logistics to meet three​ goals:

drive down inventory​ investment, lower delivery​ costs, and improve delivery reliability and speed.

Which of the following statements is NOT true regarding channel​ assembly?

Channel assembly sends individual​ components, modules, and finished​ products, to the distributor.

Three criteria for designing distribution networks to meet customer expectations​ are:

rapid​ response, product​ choice, and service.

Which of the following statements is NOT generally an implication stemming from an increase in the number of​ facilities?

decreased total logistics cost

When determining the optimal number of​ facilities, logistics-related costs do NOT usually include which of the following​ costs?

purchasing

Which of the following statements is NOT​ true?

Finding the optimal number of facilities represents a critical and static decision.

Which of the following statements is NOT​ true?

A​ closed-loop supply chain is a designed to optimize only reverse flows.

Which of the following is NOT true about reverse logistics as compared to foward​ logistics?

Speed is often very important.

What is a supply chain designed to optimize both forward and reverse​ flows?

​closed-loop supply chain

Which organization has developed principles and standards to be used as guidelines for ethical​ behavior?

Institute for Supply Management

What event in 2011 caused manufacturers in several industries worldwide to wait 6 months or longer to see their supply chains working normally​ again?

Japanese earthquake and tsunami

Which of the following is NOT a remedy for the bullwhip​ effect?

allocate orders based on forecasts

Which of the following is TRUE regarding the bullwhip effect​ measure?

Variance amplification is present if the bullwhip measure is greater than one.

Faster shipping usually means

a more expensive shipper and lower holding costs.

Which of the following statements is NOT​ true?

A less expensive shipper tends to result in slower shipments and lower holding costs.