Chapter 6 (module 7)- Chapter 11 (module 10) - SCM 331

Supply Chain Planning

The forward-looking process of coordinating assets, resources, and information in order to maximize customer and organizational value creation through supply chain flows and activities.

Supply Chain Planner

The organizational role (and people fulfilling it) that facilitates supply chain value creation. Supply chain planners coordinate supply chain activities and transitions with the primary purpose of delivering optimal levels of:

• Customer Service, Inventory, Cost

Supply Chain Planning Discipline

The supply chain organizational discipline that prescribes methodologies for excellence in planning. This includes the development of standards for skills, training, qualifications, planning work processes, systems (including planning systems such as MRP, MPS, WMS, DRP), planning scorecards, and culture. In some benchmark supply chains, planning is grouped within a larger logistics discipline

Supply Chain

The end-to-end, integrated system of processes and activities required to deliver products and services from the supplier’s supplier to the consumer’s shelf

Supply Chain Organization

The holistic internal and external resources and teams required to deliver valued products and services to the end-customers and consumers with excellence. This includes (but is not limited to) procurement, manufacturing, engineering, process control, quality, safety/environmental, innovation program management, warehousing, transportation/distribution, and logistics (materials/production/category and customer planning)

ABC Widgets Company produces a wide range of widgets for industrial use. Their most popular model is the W-347. At the start of the year, ABC Widgets has 2,500 finished W-347s in inventory. Over the course of the first quarter, the comapny produces an additional 1,000 units and ships to customers 3,250 units. How many finished W-347s does ABC Widgets have in inventory at the end of the first quarter?

A. 250 units

B. 500 units

C. 1,000 units

D. 2,500 units

E. 3,250 units

A. 250

Business Planning usually has a timeframe of ___________ and is focused on _________ .

A. 12 to 60 …. Defining the most important steps a company needs to take in order to deliver long-term shareholder value

B. 6 to 36 months …. Analyzing and prioritizing the customer channels the organization will focus on for the next year

C. 3 to 18 months …. cross-functional business process such as demand-supply integration (DSI), sales & operations planning (S&OP), and/or integrated business planning (IBP)

D. 0 to 6 months …. Managers and technicians developing production schedules, loading schedules, warehouse capacity, truck capacity, and even personal vacation plans

E. 0 to 1 month …. the daily transactions that implement the plans developed in other stages of the planning process

C. 3 to 18 months …. cross-functional business process such as demand-supply integration (DSI), sales & operations planning (S&OP), and/or integrated business planning (IBP)

While forecasts remain an important part of supply chain planning, benchmark companies are working hard to reduce their reliance on forecasts—especially forecasts with long time horizons. Why?

 

Select all that apply:

A. Forecasts are always incorrect at some level

B. Forecasts are tied to a reward systems that can distort their accuracy

C. The translation of a business forecast into SKU/material forecasts is extremely difficult

D. Measuring error is an important first step in improving forecasts

E. Forecasts place greater emphasis on more recent periods and less emphasis on periods further back in time

A. Forecasts are always incorrect at some level

B. Forecasts are tied to reward systems that can distort their accuracy

C. The translation of a business forecast into SKU/material forecasts is extremely difficult.

Supply chain professionals must stay focused on best practices for end-to-end supply chain planning. These include:

 

Select all that apply:

A. Build plans based on end-to-end supply chain integration with a focus on creating value for the entire network.

B. Eliminate all internally driven variation while working closely with supply chain partners to reduce waste form external sources.

C. Use excel spreadsheets to create daily planning work and manage routine activities that should be automated.

D. Do not prioritize non-value-added complexity, leveling the end-to-end flow of resources to meet demand and creating operational drumbeats.

E. Segment and prioritize all transactions, at all levels of the planning framework, to drive effectiveness and efficiency.

A. Build plans based on end-to-end supply chain integration with a focus on creating value for the entire network.

B. Eliminate all internally driven variation while working closely with supply chain partners to reduce waste form external sources.

E. Segment and prioritize all transactions, at all levels of the planning framework, to drive effectiveness and efficiency.

Three major shifts in the business landscape have accelerated SC Planning as a key priority for companies. These include:

 

Select all that apply:

A. Rise in supply chain complexity

B. Increased number of multi-functional business processes

C. Heightened consumer expectations

D. Utilization of advanced digital capabilities

E. Trend toward both globalization and regionalization

F. Externally based customer service measure

A. Rise in supply chain complexity

B. Increased number of multi-functional business processes

C. Heightened consumer expectations

Supply chain planning is the forward-looking process of blank to blank through supply chain flows and activities.

A. coordinating assets, resources, and information .... maximize customer and organizational value creation

B. reducing costs .... to minimize total production costs

C. enhancing inventory efficiencies .... to reduce the working capital costs

D. coordinating assets, resources, and information .... maximize logistics process quality

A. coordinating assets, resources, and information .... maximize customer and organizational value creation

Supply chain planners coordinate supply chain activities and transitions with the primary purpose of delivering optimal levels of:

A. Customer service, inventory, and cost

B. Customer service, risk management, and cost

C. Long range planning, risk management, and cost

D. Inventory, production levels, and cost

A. Customer service, inventory, and cost

Design Planning usually has a timeframe of blank and is focused on blank.

A. 12 to 60 months .... defining the most important steps a company needs to take in order to deliver long-term shareholder value

B. 6 to 36 months .... analyzing and prioritizing the customer channels the organization will focus on for the next year

C. 3 to 18 months .... cross-functional business processes such as demand-supply integration (DSI), sales & operations planning (S&OP) and/or integrated business planning (IBP)

D. 0 to 6 months .... managers and technicians developing production schedules, loading schedules, warehouse capacity, truck capacity, and even personal vacation plans

E. 0 to 1 month....the daily transactions that implement the plans developed in other stages of the planning process

A. 12 to 60 months .... defining the most important steps a company needs to take in order to deliver long-term shareholder value

Strategic Planning usually has a timeframe of blank and is focused on blank.

A. 12 to 60 months .... defining the most important steps a company needs to take in order to deliver long-term shareholder value

B. 6 to 36 months .... analyzing and prioritizing the customer channels the organization will focus on for the next year

C. 3 to 18 months .... cross-functional business processes such as demand-supply integration (DSI), sales & operations planning (S&OP) and/or integrated business planning (IBP)

D. 0 to 6 months .... managers and technicians developing production schedules, loading schedules, warehouse capacity, truck capacity, and even personal vacation plans

E. 0 to 1 month....the daily transactions that implement the plans developed in other stages of the planning process

B. 6 to 36 months .... analyzing and prioritizing the customer channels the organization will focus on for the next year

Execution Planning usually has a timeframe of blank and is focused on blank

A. 12 to 60 months .... defining the most important steps a company needs to take in order to deliver long-term shareholder value

B. 6 to 36 months .... analyzing and prioritizing the customer channels the organization will focus on for the next year

C. 3 to 18 months .... cross-functional business processes such as demand-supply integration (DSI), sales & operations planning (S&OP) and/or integrated business planning (IBP)

D. 0 to 6 months .... managers and technicians developing production schedules, loading schedules, warehouse capacity, truck capacity, and even personal vacation plans

E. 0 to 1 month....the daily transactions that implement the plans developed in other stages of the planning process

E. 0 to 1 month....the daily transactions that implement the plans developed in other stages of the planning process

While forecasts remain an important part of supply chain planning, benchmark companies are working hard to blank space.

A. reduce their reliance on forecasts, especially forecasts with long time horizons

B. increase the levels of buffer inventory, especially for non-value add inventory

C. decrease the use of responsive supply chain strategies, especially in highly dynamic operating environments

D. increase the time horizon of forecasts, especially for high-variability products

A. reduce their reliance on forecasts, especially forecasts with long time horizons

As supply chains have become more complex, an increased number of multi-functional business processes have been developed and implemented to improve top-and bottom-line results of the enterprise. true or false

true

The prevalence of multichannel options has shifted power from supplier to customer, increasing the propensity for unique customer requests, while also creating demand for secondary packaging to accommodate individual consumer Internet purchase shipments. true or false

true

Utilization of advanced supply chain digital capability to drive total value. The two most promising tools are:

A. Big data and artificial intelligence

B. ERP systems and artificial intelligence

C. Excel and MRP systems

D. ERP and MRP systems

A. Big data and artificial intelligence

Operations Planning usually has a timeframe of blank and is focused on blank. 

 

A. 0 to 6 months .... managers and technicians developing production schedules, loading schedules, warehouse capacity, truck capacity, and even personal vacation plans

 

B. 6 to 36 months .... analyzing and prioritizing the customer channels the organization will focus on for the next year

 

C. 3 to 18 months .... cross-functional business processes such as demand-supply integration (DSI), sales & operations planning (S&OP) and/or integrated business planning (IBP)

 

D. 0 to 1 month....the daily transactions that implement the plans developed in other stages of the planning process

 

E. 12 to 60 months .... defining the most important steps a company needs to take in order to deliver long-term shareholder value

A. 0 to 6 months .... managers and technicians developing production schedules, loading schedules, warehouse capacity, truck capacity, and even personal vacation plans

What is the first step in the SCOR model, as mentioned in this week’s case? 

 

A. Deliver

B. Plan

C. Execute

D. Make

B. Plan

In contrast to prior weeks, what aspect of customer value have Kai and Thea finally cracked?

 

A. Forecasting and inventory management.

 

B. Form, time, and place.

 

C. None of these answer choices are correct.

 

D. Demand and supply integration.

 

E. Price, place, and promotion

B. Form, time, and Place

What is a potential factor that the duo should consider to ensure a more accurate demand plan? 

 

A. Business Cycles

 

B. Both Sales Trends and Seasonal Issues only

 

C. Sales Trends

 

D. Sales Trends, Business Cycles, and Seasonal Issues

 

E. Seasonal Issues

D. Sales Trends, Business Cycles, and Seasonal Issues

The case describes the need for Kai and Thea to engage in an operational planning process. What decision(s) would need to be made? 

 

A. Which individuals should be included in planning processes to determine demand.

 

B. How the demand plan should be utilized to plan their supply chain decisions.

 

C. How the performance of the planning process should be measured.

 

D. All of these answer choices are correct.

 

E. What factors should be considered to ensure the most accurate demand plan.

D. All of these answer choices are correct.

Kai and Thea have performed valiantly in improving their thinking about what to do. According to the SCOR model, their focus should now be on “diving” into an operational planning process to guide how to do it.   

 

True

 

False

True

Kai and Thea are developing a supplier selection process. Which of the following factors is NOT a consideration for selecting suppliers for the different commodities they need to buy? 

 

The quoted price per unit.

 

The marketing strategy of their suppliers.

 

The supplier’s sustainability initiatives.

 

The reliability of the goods.

 

The quality of the goods.

The marketing strategy of their suppliers.

Which of the following is a key challenge that Kai and Thea face in improving their purchasing activities? 

 

They need to determine how often to buy.

 

They need to identify which suppliers to buy from, and what relationships to form.

 

All of these answer choices are correct.

 

They need to determine what and how much to procure of non-sales related commodities.

All of these answer choices are correct.

Which of the following would not be classified as indirect spend for KT’s Wicked Dive Shop? 

 

Goods for resale, such as scuba masks.

 

Office equipment for the retail store and storeroom.

 

Shop cleaning supplies.

 

Administrative services.

Goods for resale, such as scuba masks.

Which of the following is a purchasing strategy that Kai and Thea could use to improve the effectiveness and efficiency of their purchasing activities? 

 

Negotiate better pricing with their suppliers.

 

Develop long-term, strategic relationships with key suppliers.

 

Aggregate spend of commonly purchased items.

 

Centralize their purchasing activities.

 

All of these answer choices are correct.

All of these answer choices are correct.

True or False:

Kai and Thea also intend to offer diving instruction at a local pool, qualification dives, and dive trips to various locations on the East Coast and even the Caribbean. Since these are services, they do not need to develop a sourcing strategy for these items. 

 

True

 

False

False

You are a supply manager at a large U.S. bank and you are responsible for buying marketing and creative services (advertising, etc.). The marketing services category represents a substantial amount of procurement spend and the suppliers that compete in this industry tend to have very different capabilities. Consider the Kraljic matrix and classify this purchase. 

 

Non-critical item

 

Leverage item

 

None of these are the appropriate classification for this component.

 

Strategic item

 

Bottleneck item

Strategic item

When thinking about price reductions what can purchasing do to achieve significant price or cost savings and maintain the appropriate supplierrelationship when buying leverage items? 

 

Supply base reduction

 

Forward Buying

 

All of the above are tactics to achieve price or cost savings

 

Buy the product from more suppliers

 

Hard ball negotiations

Supply base reduction

On Kraljic’s matrix, the quadrant of “bottleneck” is the most challenging for purchasing managers to deal with? In fact, it is recommended that you think of ways to shift these items to other quadrants of the matrix. What is one purchasing tactic that might allow you to do that? 

 

Buying consortium, group together multiple buyers

 

Use P-cards and on-line catalogs

 

Reverse auction

 

Set up a long term contract

 

Switch suppliers

Buying consortium, group together multiple buyers

When are supplier evaluation and selection decisions initiated? 

 

In response to requests from internal customers

 

All of these answer choices are correct

 

During routine market testing

 

During the design and building of new facilities

 

During new product development

All of these answer choices are correct

What is the best tactic purchasing can use in order tomeet the material and support needs of its internal customers? 

 

Buy from suppliers that are geographically close to the location of internal customers.

 

Find the lowest possible price through low-cost country sourcing.

 

Automate the purchasing process with the suppliers.

 

Minimize the number of suppliers in the supplier pool.

 

Provide an uninterrupted flow of the appropriate quality materials and services.

Provide an uninterrupted flow of the appropriate quality materials and services.

Both objective and subjective measures are used to measure the performance of suppliers. Which of the following is NOT true regarding objective and subjective measures? 

 

Subjective measures can be biased and dependent on the user.

 

Objective (Hard) Measures are quantitative

 

Subjective (Soft) Measures are based on preference or judgment

 

All of these answer choices are correct

 

An example of a subjective measure is supplier on-time delivery

An example of a subjective measure is supplier on-time delivery

Which of the following is generally NOT true about supply management and the bottom line (net profit to the firm)? 

 

Outsourcing can allow firms to focus on their core competencies, possibly reducing waste, which then has the potential to improve the bottom line

 

A dollar saved in materials cost is usually considered a dollar increase in net income, which directly translates into bottom line savings

 

Purchased items account for a large percentage of the cost of goods sold. Hence, a reduction in cost of purchased goods has a major impact on the bottom line

 

A dollar saved in purchasing impacts the cost of goods sold

 

A Euro increase in sales is equivalent to a Euro in decrease in materials cost in impacting the bottom line

A Euro increase in sales is equivalent to a Euro in decrease in materials cost in impacting the bottom line

What term is best described as the process of combining purchasing requirements across operating units in order to capitalize on suppliers’ fixed cost allocations and improvements in suppliers’ productivity? 

 

Leveraging

 

Specifying

 

Contracting

 

Strategizing

 

Spot Buying

Leveraging

How can purchasing add value to an organization? 

 

By reducing the total cost of products

 

By collaborating with other areas such as logistics on supplier location decisions.

 

By ensuring an uninterrupted flow of materials or services

 

By increasing revenue through supplier innovation and new product launch

 

All of these (and MORE) are ways that purchasing can contribute to organizational success.

All of these (and MORE) are ways that purchasing can contribute to organizational success.

Top line contributions by the purchasing function include which of the following?

 

Supply base reduction

 

Involvement in new product development

 

Cost cutting

 

Leveraging

 

All of these answer choices are correct

Involvement in new product development

which of the following is NOT an area in which successful supply managers need expertise?

Technologies

Customers

Suppliers

Processes

Resources

Customers

when purchasing and supply management works well within an organization, the company acquires the best resources from around the world, which allows for competition on cost, quality, and innovation.

True

False

true

which of the following is the most important right of purchasing?

Delivery to the RIGHT place

The RIGHT price

The RIGHT supplier

The RIGHT time

The RIGHT material

The RIGHT supplier

One of the most challenging aspects of purchasing is to ensure an uninterrupted flow of supply. Which of the following might "interrupt" that flow?

Natural disasters

Supplier quality issues

Logistics interruptions

Financial issues

All of the above

All of the above

a dollar saved in material costs goes directly to an increase in revenue for the organization.

true

false

false

Purchasing has become a strategic contributor to organizational value by contributing to both the top and bottom line of the business.

True

False

true

The choice of suppliers is important to ensure an uninterrupted flow of supply and avoid some of the problems inherent in complex supply chains.

True

False

true

Supplier portfolio analysis was introduced by Michael Porter.

True

False

False

An item with high market complexity and low importance to the organization should be classified as:

Noncritical

Leverage

Strategic

Bottleneck

None of the above

Bottleneck

The purchasing function contributes to the type and bottom line of an organization.

true or false

true

Top line contributions by the purchasing function include which of the following?

Cost cutting

Supply base reduction

Leveraging

Involvement in new product development

All of the above

Involvement in new product development

When are supplier evaluation and selection decisions initiated?

In response to requests from internal customers

During the design and building of new facilities

During new product development

During routine market testing

All of the above

All of the above

As a category specialist, you need to develop expertise on which of the following?

a. Price

b. Data retrieval

c. Puzzles

d. Availability

e. a and d only

e. a and d only

How can purchasing add value to an organization?

By ensuring an uninterrupted flow of materials or services

By reducing the total cost of products

By collaborating with other areas such as logistics on supplier location decisions.

By increasing revenue through supplier innovation and new product launch

All of the above (and MORE) are ways that purchasing can contribute to organizational success.

All of the above (and MORE) are ways that purchasing can contribute to organizational success.

Both objective and subjective measures are used to measure the performance of suppliers. Which of the following is NOT true regarding objective and subjective measures?

Objective (Hard) Measures are quantitative

Subjective (Soft) Measures are based on preference or judgment

An example of a subjective measure is supplier on-time delivery

Subjective measures can be biased and dependent on the user.

All of the above are true.

An example of a subjective measure is supplier on-time delivery

What is the best tactic purchasing can use in order to meet the material and support needs of its internal customers?

Provide an uninterrupted flow of the appropriate quality materials and services.

Buy from suppliers that are geographically close to the location of internal customers.

Find the lowest possible price through low-cost country sourcing.

Minimize the number of suppliers in the supplier pool.

Automate the purchasing process with the suppliers.

Provide an uninterrupted flow of the appropriate quality materials and services.

What term is best described as the process of combining purchasing requirements across operating units in order to capitalize on suppliers’ fixed cost allocations and improvements in suppliers’ productivity?

Leveraging

Specifying

Spot buying

Strategizing

Contracting

Leveraging

You are a supply manager at a large U.S. bank and you are responsible for buying marketing and creative services (advertising, etc.). The marketing services category represents a substantial amount of procurement spend and the suppliers that compete in this industry tend to have very different capabilities. Consider the Kraljic matrix and classify this purchase.

Leverage item.

Bottleneck item.

Strategic item.

Non-critical item.

None of these are the appropriate classification for this component.

Strategic item

When thinking about price reductions what can purchasing do to achieve significant price or cost savings and maintain the appropriate supplier relationship when buying leverage items?

Forward buying

Supply base reduction

Hard ball negotiations

Buy the product from more suppliers

All of the above are tactics to achieve price or cost savings

Supply base reduction

Manufacturing is referred to as the “center” of the supply chain due to this area typically:

having the most people.

requiring the most capital equipment investment.

consuming the most resources.

often being the supply chain constraint.

All of the above

All of the above

The video about Boeing 737 manufacturing is an example of:

discrete manufacturing.

continuous or process manufacturing.

discrete manufacturing.

Design capacity includes which of the following items?

Time for holidays

Equipment design rate times 24 hours/day times 365 days/year

Rate of the constraint times operational efficiency

A solid forecast of next year performance by the plant manager

Individual rates set by each plant

Equipment design rate times 24 hours/day times 365 days/year

Which of the following is NOT true about a value?

Values reflect what the organization believes.

Values depend on the history and culture of the enterprise.

Values change with the priorities of the business.

Values include safety, quality, and customer service.

Values require ongoing leadership work to support them.

Values change with the priorities of the business.

Safety is a value because:

Priorities change from day to day.

Everyone likes a safe operation.

The federal government has mandated safety as a value.

Safety’s importance does not vary with time or situation.

Safety normally is the top priority.

Safety’s importance does not vary with time or situation.

The advantage of proprietary equipment is:

less capital required.

provides competitive advantage.

faster delivery time.

less technical support required.

less unique spare parts.

provides competitive advantage.

Which of the follow maintenance strategies was NOT discussed?

Corrective

Probabilistic

Preventative

Predictive

Autonomous

Probabilistic

A current best practice strategy that focuses on equipment maintenance is:

RtT.

TPM.

Lean.

PtD.

Six Sigma.

TPM

Blank Space is composed of human labor and machine volume needed to convert something into a product or service.

Service capacity

Manufacturing

Service operations

Operational capacity

Operational load

Operational capacity

As demonstrated by Boeing, large, complex products can also be made using Blank Space manufacturing process.

project

job shop

batch

assembly line

All of the above

assembly line

Blank Space can be thought of as Design Capacity minus estimated allowances for necessary breaks in operation.

Effective Capacity

Total Capacity

Demonstrated Capacity

Operating Capacity

Theoretical Capacity

Effective Capacity

According to the Theory of Constraints, a supply chain’s speed is limited by Blank Space.

all constraints

employee errors

its biggest constraint

effective capacity

machine hours

its biggest constraint

Which of the following are considered the “legs” of manufacturing?

People

Materials

Equipment

Information

All of the above

All of the above

Situational leadership is considered a/an Blank Space and utilized by high-performing companies.

best practice

business strategy

optional leadership style

talent development tactic

All of the above

best practice

Despite typically being more expensive than standard equipment, proprietary equipment is beneficial as it can provide Blank Space.

long-term cost savings

a reduced reliance on employees

a competitive advantage

a fulfillment advantage

a decrease in the amount of required packaging time

a competitive advantage

Which of the following are base components of a make vs. buy decision?

Capability to produce

Scale

Proprietary

Capacity

All of the above

All of the above

In a Blank Space system, horizontal teams are created to take ownership of a critical system.

lean manufacturing

six sigma

total productive maintenance

total quality management

statistical process control

total productive maintenance

Blank Space is a process improvement system that focuses on removing waste and simplifying systems.

Lean manufacturing

Six sigma

Total productive maintenance

Total quality management

Statistical process control

Lean manufacturing

Which of the following should KT consider regardingtheir logistical capabilities? 

 

What transportation consolidation opportunities for inbound product movements exists.

 

What transportation modes should be utilized to move high-cost, customized products.

 

All of these answer choices are correct.

 

What product and demand characteristics they should use to determine product placement in their new storage space.

 

What key metrics they should look for when selecting transportation service providers.

All of these answer choices are correct.

What benefit does the new storage space offer to Kai and Thea's business? 

 

It provides more flexibility in holding inventory.

 

It lowers their overall profits.

 

It allows them to reduce product variety to increase customer satisfaction.

 

It increases their retail store’s expenses.

It provides more flexibility in holding inventory.

What kind of products would warrant the use of Air freight transportation? 

 

High-cost, customized products.

 

Low-cost, build to stock products.

 

None of these answer choices; they should utilize low-cost transportation for all of their products.

 

Large, heavy products.

High-cost, customized products.

What did Kai and Thea do to address the issues with delayed and misdelivered orders? 

 

Charged the shipping fees to their customers.

 

Considered buying products at the source and arranging transportation themselves.

 

Reduced the variety of product offerings.

Increased their supplier base

Considered buying products at the source and arranging transportation themselves.

Why did Kai and Thea decide to rent additional space on Central Avenue? 

 

To use their current retail store as additional storage space.

 

To exploit expanded and less expensive storage space.

 

Both to exploit expanded and less expensive storage space and To use their current storage space as extended retail space.

 

To use their current storage space as extended retail space.

 

To open a second retail location.

Both to exploit expanded and less expensive storage space and To use their current storage space as extended retail space.

Which mode of transportation would you use to ship 6 cases of tulips valued at US$300 per case from Boston, MA to a customer’s wedding taking place in 2 days in Phoenix, AZ? 

 

Air

 

Truck

 

Inland water transport

 

Pipeline

 

Rail

Air

What warehouse activity includes identifying the location of the product required to fill an order? 

 

Put away

 

Towline

 

Shipping

 

Order picking

 

Shipment assembly

Order picking

Samsung wants to transport a load of 52-inch HDTVs from Carlsbad, California, to San Francisco. What method of transportation should Samsung use? 

 

Pipeline

 

Water

 

Air

 

Truck

Truck

What type of slotting technique assigns a specific location for each SKU every time it is stored? 

 

Random

 

Dedicated

 

Spot stocking

 

Assortment

 

Product profiling

dedicated

Warehouses play a critical role in the supply chain system by: 

 

Preventing the consolidation of materials from multiple suppliers

 

Enabling diseconomies of scale in sourcing, manufacturing, and transportation

 

Providing an inflexible and high-cost capability for customizing products

 

Placing a buffer between supply and demand

Placing a buffer between supply and demand

______________describes the process of preassigning incoming replenishment shipments to actual demand orders, so that as soon as a product arrives in the facility, it is already assigned to an order. 

 

Assortment

 

Break bulking

 

Cross docking

 

Spot stocking

 

Product life cycle management

Cross docking

Transportation costs per unit of freight increase at a decreasing rate with increasing volume, increasing distance traveled, and higher weight density. This defines what theory? 

 

Transportation economies and cost theory

 

intermediary theory

 

Weighing out theory

 

Cube standpoint theory

Transportation economies and cost theory

_______________is part of the supply chain involved in managing the forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption to meet customers' requirements.

 

Transportation

 

Procurement

 

Negotiation

 

Logistics

Logistics

Carriers will give you better rates if you give them revenue miles in ____________.

 

Dollars

 

Both directions

 

More delivery time

 

Both cash and bonuses

 

Both cash and prizes

Both directions

What mode of transportation is the biggest competition for an inland water transport, based on similar cost and service characteristics? 

 

Pipeline

 

Truck

 

Rail

 

Air

Rail

______ + ______ = Rate bargaining power when negotiating rates.

Volume + Consistency

Technology + Consistency

Rates + Consistency

Volume + Good Relationships

Volume + Value Density

Volume + Consistency

What type of slotting technique assigns a specific location for each SKU every time it is stored?

Assortment

Random

Product profiling

Spot stocking

Dedicated

Dedicated

____________ is part of the supply chain involved in managing the forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption to meet customers' requirements.

Procurement

Logistics

Transportation

Negotiation

Logistics

What type of warehouse has the advantage of minimizing labor disputes, facilitating economies of scale, and letting experts run the warehouse?

Public

Private

Exempt

Bonded logistics park

Subcontracted

Public

Incoming replenishment shipments are preassigned to actual demand orders, so that as soon as a product arrives in the facility, it is already assigned to an order. This describes?

Assortment

Spot stocking

Cross docking

Break bulking

Product life cycle management

Cross docking

Which is part of a quick response system where inbound shipments of bulk items are not stored long term but instead broken into smaller quantities, mixed together, and quickly shipped to individual stores?

Warehouse

Crossdock

Combine

Picking operation

Crossdock

Transportation costs per unit of freight increase at a decreasing rate with increasing volume, increasing distance traveled, and higher weight density. This defines what theory?

Weighing out theory

Transportation economies and cost theory

Cube standpoint theory

Intermediary theory

Transportation economies and cost theory

California’s current Assembly Bill 5 (or “AB5”) legislation that reclassifies some truck drivers and owner operators as employees rather than independent contractors is an example of what challenge facing the transportation industry?

Increased levels of regulation for safety and environmental emissions

Increasing traffic congestion in urban areas

Changing and dynamic nature of the regulatory environment within which carriers operate

Increased regulations limiting truck access to certain areas during daylight hours

Worsening transportation infrastructure in the industrialized world

Changing and dynamic nature of the regulatory environment within which carriers operate