Deck 14: Global Supply Chain Procurement and Distribution

Question 1

Many companies are outsourcing in countries where higher prices for supply are offset by higher quality.

Answer 1

False

Question 2

Box retailers are some of the largest facilities in the United States and Canada.

Answer 2

False

Question 3

Companies use outsourcing as a strategic move to transfer their core competencies to their suppliers.

Answer 3

False

Question 4

In today's competitive environment,speed is often the most important factor in logistics.

Question 5

Procurement involves the selection of a supplier.

Question 6

Distribution includes both warehousing and transportation functions.

Question 7

Cross-docking is one of the reasons Walmart has such an efficient supply chain.

Question 8

Distributors deal only in very large quantities providing infrequent deliveries.

Question 9

Outsourcing is a relatively new phenomenon used strictly by multinationals.

Question 10

Logistics includes distribution and transportation activities within a supply chain.

Question 11

One of the advantages of outsourcing is that firms can focus on what they do best.

Question 12

Purchasing from a supplier is called procurement.

Question 13

Postponement involves moving some of the manufacturing into the distribution centre.

Question 14

E-marketplaces are sites on the Internet where companies can find new business partners.

Question 15

Purchasing can be classified according to two broad categories: direct (manufacturing inputs)and indirect (operating inputs).

Question 16

E-procurement is mostly used to purchase indirect products that support production.

Question 17

Outsourcing and sourcing have the same meaning and are often used interchangeably.

Question 18

Outsourcing supports vertical integration of a firm's supply chain.

Question 19

Outsourcing involves sourcing from a supplier goods and services that were previously produced in-house.

Question 20

In a reverse auction,a supplier posts on the Internet products available for bids from potential customers.

Question 21

Package delivery is best suited to fast and reliable shipments of large,bulky items.

Question 22

Warehouse management systems are often used to run the day-to-day operations of a distribution centre.

Question 23

International trading is viewed as "business as usual" for any sized firm.

Question 24

Transportation involves the movement of a product within a warehouse or distribution centre.

Question 25

Cross-docking allows a distribution centre to direct incoming shipments straight to a shipping dock to fill outgoing orders.

Question 26

The combination of several modes of transportation is called intermodal transportation.

Question 27

Most favoured-nation (MFN)status is an agreement where members of the WTO extend to other members the most favourable treatment given to any trade partner.

Question 28

In an attempt to minimize inventory levels,companies frequently require their suppliers to use a(n)___ inventory management system.

A)periodic delivery
B)continuous
C)on-demand
D)all of the above

Question 29

A value-added tax is based on the total cost of producing a product and not the value added by the supply chain partner.

Question 30

International trade specialists help firms overcome obstacles associated with importing products.

Question 31

What a company does best is often referred as the firm's core

A)capabilities.
B)activities.
C)competencies.
D)competitiveness.

Question 32

Quality has been a problem in Mexico where it can vary dramatically between companies.

Question 33

Distribution outsourcing allows companies to focus on their core competencies.

Question 34

A transportation management system controls activities at a facility's dock and schedules appointments.

Question 35

Information technology is an enabler of globalization for middle-tier companies.

Question 36

Globalization decreases the need for a well-planned domestic supply chains.

Question 37

Landed cost includes the cost of storing and transporting a product but not the cost of producing it.

Question 38

Postponement involves delaying shipments from suppliers until demand is more certain.

Question 39

Mexico has replaced China as the U.S.'s and Canada's top trade partner.

Question 40

The proliferation of nation trading groups has increased tariffs and decreased duties.

Question 41

The selection of suppliers is called

A)outsourcing.
B)procurement.
C)sourcing.
D)none of the above.

Question 42

The mode of transportation that utilizes the most containers is

A)water.
B)intermodal.
C)trucking.
D)rail.

Question 43

The most common mode of transporting products is

A)rail.
B)trucking.
C)package delivery.
D)water.

Question 44

Which of the following is not an obstacle to global supply chain management?

A)increased documentation
B)differences in communication technology
C)decreased delivery times
D)different business practices

Question 45

Which mode of transportation transports products in liquid form?

A)pipeline
B)ocean
C)both a and b are correct
D)airline

Question 46

Companies often outsource to

A)focus on core competencies.
B)achieve greater flexibility.
C)reduce costs.
D)all of the above.

Question 47

Landed cost includes

A)value added tax.
B)duties.
C)customs.
D)all of the above.

Question 48

International trade specialists include all of the following except

A)export packers.
B)finance brokers.
C)purchasing agents.
D)duty specialists.

Question 49

Partnerships require suppliers to provide

A)higher quality.
B)prompt delivery.
C)lower prices.
D)all of the above.

Question 50

Factors driving globalization of the supply chain include all of the following except

A)international trade agreements.
B)advances in information technology.
C)lower cost transportation.
D)government intervention.

Question 51

With vendor-managed inventory

A)distributors generate orders.
B)retailers place orders.
C)customers place orders.
D)manufacturers place orders.

Question 52

E-procurement is most often used for

A)domestic goods.
B)indirect goods.
C)finished goods.
D)international goods.

Question 53

Which of the following is not a feature of a warehouse management system?

A)warehouse optimization
B)order management
C)vendor management
D)custom labelling and packaging

Question 54

___ are web sites where companies and suppliers conduct business-to-business activities.

A)E-procurements
B)E-Marketplaces
C)E-Marketspaces
D)Reverse Auctions

Question 55

The focus of distribution,what it accomplishes,is referred to as

A)logistics.
B)order fulfillment.
C)customer service.
D)maintaining inventories.

Question 56

Benefits of e-procurement include all of the following except

A)lower prices.
B)faster delivery.
C)fewer transactions.
D)reduced labour.

Question 57

Distribution includes all of the following activities except

A)packaging.
B)storing.
C)shipping.
D)sourcing.

Question 58

Distribution centres usually ship product to

A)retailers.
B)customers.
C)suppliers.
D)warehouses.

Question 59

Partnerships between customers and suppliers are beneficial because they

A)provide security and stability.
B)reduce the need for global suppliers.
C)enhance competition in the supply chain.

Question 60

Long life,high capital cost,and low operating costs are associated with which mode of transportation?

A)pipeline
B)canal
C)barges
D)water

Question 61

Explain the concept of landed cost and discuss how it is used to make global sourcing decisions.

Question 62

List several of the advantages associated with outsourcing.

Question 63

List and explain the major components of a warehouse management system.

Question 64

Identify some of the obstacles to global supply chain management.

Question 65

List and discuss some of the forces driving globalization.

Question 66

List and discuss the seven different modes of transportation.

Question 67

Explain the difference between procurement and sourcing? Between sourcing and outsourcing?

Question 68

What are the advantages associated with e-procurement?

Question 69

Which of the following countries is not an important Canadian trading partner?

A)U.S.
B)Mexico
C)Japan
D)Russia