Deck 11: Global Supply Chain Procurement and Distribution

Question 1

The following transportation table shows the cost of shipping one unit from each source to each destination in the upper right-hand corner of each cell, as well as the supply capacities and demand requirements: The optimal solution is: The total amount shipped from Boise to Los Angeles is:

A) 3
B) 6
C) 3,000
D) 5,000

Answer 1

3,000

Question 2

In an unbalanced transportation problem supply and demand are not equal.

Answer 2

True

Question 3

The following transportation table shows the cost of shipping one unit from each source to each destination in the upper right-hand corner of each cell, as well as the supply capacities and demand requirements: The optimal solution is: How many units of New York demand are supplied from Omaha?

A) 5
B) 10
C) 1,500
D) 6,000

Answer 3

6,000

Question 4

An important factor in supply chain management is determining the lowest-cost transportation provider from among several alternatives.

Question 5

The trans-shipment model is an extension of the transportation model in which intermediate trans-shipment points are added between the sources and destinations.

Question 6

The following transportation table shows the cost of shipping one unit from each source to each destination in the upper right-hand corner of each cell, as well as the supply capacities and demand requirements: The optimal solution is: The total cost of the shipping plan is:

A) $15,000
B) $18,500
C) $35,500
D) $43,500

Question 7

Two quantitative techniques that are used for determining the least cost means of transporting goods and services are the transportation method and the queuing method.

Question 8

It is not possible to solve transportation models using spreadsheets like Microsoft Excel.

Question 9

In a transportation model each source is able to supply a fixed number of units of the product and each destination has a fixed demand for the product.

Question 10

Each cell in a transportation table represents the amount transported from one source to all destinations.

Question 11

The stepping-stone method is a quantitative technique that can be used to solve transportation models quantitatively.

Question 12

Use the trans-shipment model to determine the lowest cost method of transporting from sources with fixed supply to destinations with fixed demand when there are intermediate destination points.

Question 13

The following transportation table shows the cost of shipping one unit from each source to each destination in the upper right-hand corner of each cell, as well as the supply capacities and demand requirements: The optimal solution is: The total amount shipped from Portland to Dallas is:

A) 4,500
B) 1,000
C) 4,000
D) 1,500

Question 14

The following transportation table shows the cost of shipping one unit from each source to each destination in the upper right-hand corner of each cell, as well as the supply capacities and demand requirements: The optimal solution is: How many units of Albany demand are supplied from Nashville?

A) 4,500
B) 4,000
C) 1,500
D) 1,000

Question 15

The following transportation table shows the cost of shipping one unit from each source to each destination in the upper right-hand corner of each cell, as well as the supply capacities and demand requirements: The optimal solution is: The total cost of the shipping plan is:

A) $17,000
B) $25,000
C) $50,000
D) $66,000

Question 16

If a route is prohibited, units can be transported from a particular source to a particular destination.

Question 17

One way to incorporate a prohibited route in a transportation problem is to

A) assign a low cost, relative to the other route shipping costs, to the prohibited route
B) assign a high cost, relative to the other route shipping costs, to the prohibited route
C) assign a zero cost to the prohibited route
D) transportation problems with prohibited routes cannot be modeled

Question 18

Transportation models can be solved within the context of a transportation table.

Question 19

Use the transportation model to determine the lowest cost method of transporting from sources with fixed supply to destinations with fixed demand.

Question 20

In a transportation model the total supply and total demand must be equal.

Question 21

What is the total cost of the optimal solution?

A) $43,500
B) $48,500
C) $54,200
D) $56,900

Question 22

Discuss procurement and explain outsourcing as a strategic decision.

Question 23

How many units are being shipped to New York?

A) 0
B) 400
C) 500
D) 600

Question 24

Discuss distribution strategies, systems, and processes.

Question 25

How many units are shipped through the Minneapolis trans-shipment point?

A) 500
B) 1,500
C) 2,500
D) 3,500

Question 26

Which facility is not producing at capacity?

A) Boston
B) Philadelphia
C) Atlanta
D) New York

Question 27

What is the overall cost of the trans-shipment plan shown above?

A) $215,000
B) $231,000
C) $286,000
D) $343,000

Question 28

Having more than one shipping distribution but with the same total cost is known as:

A) a prohibited solution
B) an unequal solution
C) an alternative optimal solution
D) a trans-shipment solution

Question 29

Prohibited Routes are applicable to which of the following models?

A) transportation model only
B) trans-shipment model only
C) both the transportation and trans-shipment models
D) none of the above

Question 30

The following transportation table shows the cost of shipping one unit from each source to each destination in the upper right-hand corner of each cell, as well as the supply capacities and demand requirements: Use MS Excel Solver (or other appropriate software) to find the optimal solution. The minimum cost is:

A) $66,000
B) $63,000
C) $61,500
D) $60,500

Question 31

Outsourcing is a relatively new phenomenon used strictly by multinationals.

Question 32

Assess the advantages and disadvantages of different modes of transportation.

Question 33

The following transportation table shows the cost of shipping one unit from each source to each destination in the upper right-hand corner of each cell, as well as the supply capacities and demand requirements: Use MS Excel Solver (or other appropriate software) to find the optimal solution. The minimum decrease in the unit shipping cost from St. Louis to New York that would change the optimal solution is:

A) 0.95
B) 1.00
C) 1.01
D) 1.50

Question 34

The spreadsheet cell that contains the total cost of the transportation plan is known as the __________ in Excel's Solver dialog box.

A) Changing Cell
B) Target Cell
C) Constraint Cell
D) Total Cost Cell

Question 35

How many boxes are sent from Seattle to the Chicago trans-shipment point?

A) 500
B) 1,500
C) 2,500
D) 4,000

Question 36

How many units are being shipped from Philadelphia?

A) 0
B) 200
C) 400
D) 500

Question 37

Describe the basic elements of e-procurement and spend analysis.

Question 38

Discuss issues and trends in the global supply chain.

Question 39

How many boxes are shipped from Seattle?

A) 4,500
B) 4,000
C) 1,500
D) 500

Question 40

The following transportation table shows the cost of shipping one unit from each source to each destination in the upper right-hand corner of each cell, as well as the supply capacities and demand requirements: Use MS Excel Solver (or other appropriate software) to find the optimal solution. In the optimal solution, the amount shipped from Charlotte to New York is:

A) 1500
B) 2500
C) 4500
D) 5500

Question 41

Purchasing from a supplier is called procurement.

Question 42

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

Question 43

Logistics includes distribution and transportation activities within a supply chain.

Question 44

Distribution includes both warehousing and transportation functions.

Question 45

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

Question 46

Distributors deal only in very large quantities providing infrequent deliveries.

Question 47

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

Question 48

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

Question 49

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

Question 50

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

Question 51

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

Question 52

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

Question 53

Procurement involves the selection of a supplier.

Question 54

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

Question 55

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

Question 56

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

Question 57

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

Question 58

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

Question 59

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

Question 60

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

Question 61

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

Question 62

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 63

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

Question 64

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 65

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

Question 66

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

Question 67

Distribution outsourcing allows companies to focus on their core competencies.

Question 68

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

Question 69

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

Question 70

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

Question 71

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

Question 72

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

Question 73

Partnerships require suppliers to provide

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

Question 74

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

Question 75

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

Question 76

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

Question 77

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 78

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

Question 79

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

Question 80

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

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