SCM-452 Exam 1

According to the text, the FOUR important elements of the supply chain are

Supply, operations, logistics, integration

Traditionally, information has been viewed as flowing in the opposite direction of products, that is, from the market/customer back to the wholesalers, manufacturers, and vendors.

None of these answers.

Which of the following is a reverse logistics activity

Recycling products and components

As a firm spends more on transportation service, cost of lost sales

decrease

According to the text, the goal of a good performance evaluation system is to provide metrics that are

Understandable, easy to measure, focused on value-added results

The value that is added to goods through a manufacturing or assembly process is

form utility

Costs associated with investigating alternative suppliers and investigating alternative delivery options can be classified as

Pre-transaction costs

The utility that is created by moving goods from production points to market points where demand exists is referred to as _____ utility

place

As the level of substitutability for a product increases, its stockout costs to the manufacturer

increase

Materials handling is concerned with

short-distance movement

Which of the following is a disadvantage of carrying too much inventory?

it creates an unnecessary waste of scarce resources

A(n) _____ relationship exists between the cost of lost sales and inventory cost

inverse

Facility location has ____________on the supply chain.

a long-term impact

When a specific point in time, or level of production, is chosen and costs are developed for the various logistics cost centers, it is called:

short-run analysis

There are two parts to the order management process. The first is _____ and the second is _____.

influencing how the customer orders; managing the order after it is received

Four types of forecast error measures can be used. Which one of the following is not one of the four types?

Exponential smoothing for trends

One type of demand fluctuation is caused by random variation. What is random variation?

A development that cannot normally be anticipated

As the weight density of a product decreases, transportation cost per pound:

increases

Independent demand is the:

Demand for a firm’s end products.

Which of the following does a forecast always assume?

The past always repeats itself

The weighted moving average method assigns:

a weight to each previous period.

A national drug store chain arranging to have Valentine greeting cards and candies in its stores by mid-January is an example of which utility?

Time utility

The traditional role of customer service at the interface between marketing and logistics manifests itself through the _____ dimension of the marketing mix.

place

Taylor’s company has been growing rapidly, and she now recognizes that she can no longer serve all of her customers personally. In determining which customer relationships to maintain herself and which to reassign to her new sales assistant, she has recognized that some customers have bought a lot of her products because they allowed her to become deeply involved in their businesses, while other customers don’t want a lot of attention and just want to place a few small orders occasionally. Taylor must be taking which step in implementing a CRM process?

Segmenting the customer base by profitability

Mean absolute deviation (MAD) is a good metric of forecast accuracy because it shows whether a forecast is above or below actual demand.

False