supply chain exam 1

Company A provides corn to Company B to make into corn syrup. Company B sells its corn syrup to Company C, who makes ice cream for sale at Company D. Company D is a _________ in the supply chain of ice cream.

retailer

A supermarket is typically at the _________ level of a supply chain.

retailer

With _________ operations, a product is made before the _________ for that product has been identified.

make-to-stock, demand

Reasons for overseas sourcing include reducing _________.

labor costs

Characteristics of innovative products include _________.

high demand forecast uncertainty, high risk of obsolescence, high gross margin, high frequency of markdowns

A supply chain that involves suppliers of raw materials in Germany, manufacturers in China, distributors in Spain, and retailers in the United States has _________ different levels or stages.

4

Which of the following is an example of functional products?

toilet paper

Make-to-order is a viable strategy when:

A. customers are not willing to wait for the product.

B. product variety is desirable.

C. products are inexpensive to hold in inventory.

D. product differentiation cannot be delayed.

product variety is desirable (also when customers are willing to wait, assembly is cheap/quick, holding inventory is expensive, transporting is not expensive)

With _________ operations, a product is made after the _________ for that product has been identified.

make-to-order, demand

_________ products are relatively _________ because they can experience substantial variability.

innovative, risky

_________ is responsible for negotiating the price of goods purchased from its suppliers.

procurement

A small, independently operated deli has decided to open a new store on the opposite side of town. Which form of demand variability would this introduce?

location

Company A provides corn to Company B to make into corn syrup. Company B sells its corn syrup to Company C, who makes ice cream for sale at Company D. Company C is a _________ in the supply chain of ice cream.

manufacturer

From which supply chain level would an online order placed on Walmart.com likely be shipped?

distribution center/fulfillment center

Supply chain partners can increase the variability in the supply chain in a number of ways such as:

failure to deliver quantity or quality needed, failure in finances, failure to operate in an acceptable manner

The bullwhip effect is the tendency for _________ to be more volatile at _________ levels of the supply chain.

demand, volatile

Which of the following is a match between the type of supply chain and the type of product? A) Physically efficient, innovative B) Market responsive, functional C) Physically efficient, functional D) Market responsive, flexible

physically efficient, functional

The four key costs associated with a supply chain include

procurement, labor, inventory, transportation

C&A Clothiers, an American company, decides to make and sell its products in Australia. C&A is able to mitigate what kind of disruptions to its supply chain?

currency fluctuations

A supply chain for goods and services consists of a _________ of firms and locations that begins with _________ and ends with _________.

network, raw materials, final users

Lead time is the time between when an order is _________ and when it is _________.

placed, delivered

Characteristics of market-responsive supply chains include

fast and expensive transportation, some spare capacity (lower factory utilization), ability to adjust production quantities/lead time

Reasons for the bullwhip effect:

overreactive ordering, batching, price promotions

Characteristics of physically efficient supply chains include

slow and cheap transportation, little spare capacity (high factory utilization), supplier selection based on low per-unit price

The Balanced Scorecard is a useful tool for helping managers translate their strategy into action in the following areas:

customers, financial performance, internal business processes, learning and growth

For an organization to grow its market share, it must:

exceed minimum standards of acceptability for its products or services.

Productivity is expressed as:

output/input

The fundamental purpose for the existence of any organization is described by its:

mission statement

With regard to operations, organization strategy should, ideally, take into account:

operations strengths and weaknesses

Years ago in the overnight delivery business, providing package tracking capability gave some firms a competitive advantage. Now, all firms must offer this capability simply to be in this line of business. This is an example of ______________ becoming ____________ over time.

order winners, order qualifiers

quality is a factor in both

attracting and retaining customers

Core competencies in organizations generally do not relate to:

sales price

Competitiveness doesn't include:

profitability

What is an important factor that help determines cost?

productivity

Increasing the service offered to the customer makes it more difficult to compete on the basis of:

price

Careful planning must be used with technology, otherwise there could be a(n) _____ in productivity.

reduction

Unique attributes of firms that give them a competitive edge are called:

core competencies

Scheduling personnel is an example of an operations management:

operational decision

Time-based approaches of business organizations focus on reducing the time to accomplish certain necessary activities. Time reductions seldom apply to:

internal audits

Which of the following is least likely to affect the cost an organization incurs in producing its products or services?A. price B. productivity C. location D. quality E. inventory management

cost

Product design and choice of location are examples of _______ decisions.

strategic

In the 1970s and early 1980s in the United States, organizations concentrated on:

marketing and financial strategies

An organization's mission statement serves as the basis for:

organizational goals

Where a firm locates would typically not affect that firm's

strategy

Which of the following is not a key factor of competitiveness?

A. price

B. product differentiation

C. flexibility

D. after-sale service

E. size of organization

size of organization

Which of the following would be least important in the pursuit of a time-based strategy?

cost minimization

Which of the following is NOT a factor that directly affects productivity?

a. Computer viruses

b. Use of the internet

c. Methods such as standardizing processes

d. Management

e. Cash flow

cash flow

For firms competing in worldwide markets, conducting __________________ is more complex, since what works in one country or region might not work in another.

environmental analysis

The key to successfully competing is understanding what customers want and then __________ satisfy those wants.

finding the best way

Which mission strategy has a narrow scope?

operational (vs organizational)

Managing the supply chain has become more important as a result of firms increasing their levels of

outsourcing

Production systems with customized outputs typically have relatively

skilled workers

Taking a systems viewpoint with regard to operations in today's environment increasingly leads decision makers to consider ______________ in response to the ___________.

sustainability, threat of global warming

Two widely used metrics of variation are the __________ and the _________.

mean, standard deviation

Product design and process selection are examples of _______ decisions.

system design

Buying goods or services instead of producing or providing them in-house is called

outsourcing

The fact that a few improvements in a few key areas of operations will have more impact than many improvements in many other areas is consistent with the

Pareto phenomenon

Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. This increased level of _____________ is leading to increased emphasis on ____________ management.

outsourcing, supply chain

System design includes decisions that relate to:

system capacity, location of facilities, arrangement of departments, acquisition and placement of equipment, product and service planning (strategic decisions)

System operation includes:

management of personnel, inventory planning and control, scheduling, project management, quality assurance (tactical and operational decisions)

Some companies attempt to maximize the revenue they receive from fixed operating capacity by influencing demands through price manipulation. This is an example of

revenue management

The essence of the operations function is to _____ during the transformation process.

add value

Marketing personnel and product designers must work closely with operations to successfully develop and produce new products because operations personnel can best judge how _____________ new product designs will be.

manufacturable

Marketing depends on operations for information regarding

lead time

The process of comparing outputs to previously established standards to determine if corrective action is needed is called

control

Which of the following refers to service and production processes that use resources in ways that do not harm ecological systems?

sustainability

If one organization is better able than most to respond to changes in demands or opportunities, we say that organization exhibits higher

agility

Which of the following is a common complaint that employers have when hiring recent college graduates?

a lack of general knowledge of how businesses operate

What are the characteristics of service operations?

intangible output, high customer contact, high labor content, low uniformity of input, difficult measurement of productivity, low opportunity to correct before delivery, little inventory, wide range of wages, not usually patentable

Which of the following statements about variation is false?

A. Variation prevents a production process from being as efficient as it can be.

B. Some variation can be prevented.

C. Variation can either be assignable or random.

D. Any variation makes a production process less productive.

E. Random variation generally cannot be influenced by managers.

any variation makes a production process less productive

_____ is considered to be more challenging for _____ due to the higher variation in input.

quality assurance, services

Budgeting, analysis of investment proposals, and provision of funds are activities associated with the _______ function.

finance

Measurements taken at various points in the transformation process for control purposes are called

feedback

The responsibilities of the operations manager include

the creation of goods or provision of services.

farming is an example of:

nonmanufactured goods production

Dealing with the fact that certain aspects of any management situation are more important than others is called:

recognition of priorities

What are the areas of significant difference between manufacturing and service operations?

output, customer contact, labor content, uniformity of input, measurement of productivity, quality assurance, inventory, wages, ability to patent