Question 1

________ allows the supplier and the producer to work together when designing components for the final product.&#10;A)Segment collaboration&#10;B)Design collaboration&#10;C)Demand collaboration&#10;D)Supply collaboration&#10;

Accepted Answer

Design collaboration allows the supplier and the producer to work together when designing components for the final product. It also ensures that any design changes are communicated effectively to all parties involved in designing and manufacturing the product.

Question 2

A __________ specifies parameters covering the buyer and supplier relationship. This protects the business from both external and internal sources.&#10;A)Supply contract&#10;B)Demand contract&#10;C)Demand and supply contract&#10;D)None of the above.&#10;

Accepted Answer

Once suppliers have been designated, contracts have to be organized between the buyer and each supplier. A supply contract specifies parameters covering the buyer and supplier relationship. This protects the business from both external and internal sources.

Question 3

Supply contracts should be designed to facilitate desirable supply chain outcomes and minimize actions that hurt _________ performance of supply.&#10;A)Internal&#10;B)External&#10;C)Both&#10;D)None of the above.&#10;

Accepted Answer

Contracts should be designed to facilitate desirable supply chain outcomes and minimize actions that hurt external and internal performance of supply. A supply contract should be structured to increase the firm's profits and supply chain profits, discourage information, and offer incentives to supplier to improve performance along key dimensions.

Question 4

The most common cause for suboptimal supply chain performance is _________.&#10;A)Single marginalization&#10;B)Double marginalization&#10;C)Zero margin&#10;D)None of the above.&#10;

Accepted Answer

In a supply contract, a supplier specifies a fixed price and the buyer decides on the quantity to be purchased. The most common cause for suboptimal supply chain performance is double marginalization.

Question 5

_______ is a sourcing strategy from the purchasing group that is likely to be narrow and focus on purchase price.&#10;A)Using information infrastructure&#10;B)Using multifunctional teams&#10;C)Utilizing added utility&#10;D)None of the above.&#10;

Accepted Answer

Using multifunctional teams is a sourcing strategy from the purchasing group that is likely to be narrow and focus on purchase price. A strategy developed with the joint input of purchasing, manufacturing, engineering and planning is much more likely to identify the correct drivers of total cost.

Question 6

Ensuring appropriate coordination across regions and business units maximizes economies of scale in ___________.&#10;A)Selling&#10;B)Advertising&#10;C)Purchasing&#10;D)Campaigning&#10;

Accepted Answer

The coordination of purchasing across all regions and business units allows a firm to maximize economies of scale in purchasing and also to reduce transaction costs.

Question 7

An effective sourcing strategy should make ________ its sole objective.&#10;A)Inventory reduction&#10;B)Price reduction&#10;C)Labor reduction&#10;D)Information delivery&#10;

Accepted Answer

An effective sourcing strategy should make price reduction its sole objective. All factors that influence the total cost of ownership should be identified and used for the supplier selection.

Question 8

_________ will generate more opportunities for savings than two parties working independently.&#10;A)Signing contracts&#10;B)Building long-term relationships with clients&#10;C)Giving discounts&#10;D)Ending long-term relationships with clients&#10;

Accepted Answer

A basic principle of good sourcing is that a buyer and supplier working together will generate more opportunities for savings than the two parties working independently. Solid cooperation is likely to result only when two parties have a long-term relationship with a degree of trust.

Question 9

To protect against external transportation costs, ____________ include any cost associated with terminals, airport gates, and labor that are incurred whether vehicles are in operation or not.&#10;A)Fixed operating costs&#10;B)Fixed variable costs&#10;C)Fixed labor costs&#10;D)Fixed instrumental costs&#10;

Accepted Answer

To protect against external transportation costs, fixed operating costs include any cost associated with terminals, airport gates, and labor that are incurred whether vehicles are up operation or not. For example, the fixed costs of a trucking terminal facility or airport hub are incurred regardless of the number of trucks visiting the terminal facility or flights landing..

Question 10

One of the factors affecting the shipper's decision is the _________ that needs to be paid to various carriers for transporting products to customers.&#10;A)Carrier cost&#10;B)Transportation cost&#10;C)Shipment cost&#10;D)Insurance cost&#10;

Accepted Answer

The transportation cost is the total amount paid to various carriers for transporting products to customers. It is based on the prices offered by different carriers and the extent to which the shipper uses inexpensive and slow or expensive and fast means of transportation.

Question 11

One of the ways to manage supply and shipment is through ________ transportation, which is the use of more than one method of transportation to move a shipment to its destination.&#10;A)Intermodal&#10;B)Outermodal&#10;C)Intramodal&#10;D)None of the above.&#10;

Accepted Answer

The answer of One of the ways to manage supply...

Question 12

In a ________, the retail chain structures its transportation network to have all shipments come directly from supplier to retail stores.&#10;A)Drop shipping network&#10;B)Direct shipping network&#10;C)Chinese shipping network&#10;D)All of the above.&#10;

Accepted Answer

The answer of In a ________, the retail chain structures...

Question 13

In _______ firms can significantly reduce the safety inventory they require by physically aggregation inventories in one location&#10;A)Inventory aggregation&#10;B)Insurance aggregation&#10;C)Demand aggregation&#10;D)None of the above.&#10;

Accepted Answer

The answer of In _______ firms can significantly reduce the...

Question 14

______ start(s) with a trip obtained by using a route sequencing procedure and improves the trip to shorten its length.&#10;A)Transportation Sequences&#10;B)Transit Logistics&#10;C)Route Improvement Procedures&#10;D)None of the above.&#10;

Accepted Answer

The answer of ______ start(s) with a trip obtained by...

Question 15

Managers should consider an appropriate combination of _________ and __________ to meet their needs.&#10;A)CRM and SRM&#10;B)Logistics and carriers&#10;C)Company owned and outsourced transportation&#10;D)Demand and supply&#10;

Accepted Answer

The answer of Managers should consider an appropriate combination of...

Question 16

Why should a firm design a transportation network that can handle electronic commerce?&#10;A)Due to the rising demand of home delivery.&#10;B)Due to the decreasing demand of e-shops.&#10;C)Due to rising demand for inbound logistics.&#10;D)All of the above.&#10;

Accepted Answer

The answer of Why should a firm design a transportation...

Question 17

Software is crucial to helping managers do which of the following task/s easily?&#10;A)Transportation planning&#10;B)Modal selection&#10;C)Building delivery routes and schedules&#10;D)All of the above.&#10;

Accepted Answer

The answer of Software is crucial to helping managers do...

Deck 10: Managing Supply