Deck 3: Supply Chain Drivers and Metrics

Question 1

Which of the following is not a major driver of supply chain performance?

A) Facilities
B) Inventory
C) Transportation
D) Information
E) All of the above are major drivers of supply chain performance.

Answer 1

E

Question 2

All raw materials,work in process,and finished goods within a supply chain are known as

A) facilities.
B) inventory.
C) transportation.
D) information.
E) customers.

Answer 2

B

Question 3

Seasonal inventory is inventory that is built up to counter predictable variability in demand.

Answer 3

True

Question 4

Cycle inventory is inventory that is built up to counter predictable variability in demand.

Question 5

The places in the supply chain network where product is stored,assembled,or fabricated are known as

A) facilities.
B) inventory.
C) transportation.
D) information.
E) customers.

Question 6

The data and analysis concerning facilities,inventory,transportation,and customers throughout the supply chain is known as

A) facilities.
B) inventory.
C) transportation.
D) information.
E) customers.

Question 7

The high utilization facility will have difficulty responding to demand fluctuations.

Question 8

A facility with little excess capacity will likely be no more or less efficient per unit of product it produces than one with a lot of unused capacity.

Question 9

Moving inventory from point to point in the supply is known as

A) facilities.
B) inventory.
C) transportation.
D) information.
E) customers.

Question 10

Stock keeping unit (SKU)storage is the warehousing methodology that uses a traditional warehouse to store all of one type of product together.

Question 11

Warehouse unit storage is the warehousing methodology that uses a traditional warehouse to store all of one type of product together.

Question 12

Information is potentially the biggest driver of performance in the supply chain as it directly affects each of the other drivers.

Question 13

Inventory is an important supply chain driver because changing inventory policies can dramatically alter the supply chain's efficiency and responsiveness.

Question 14

Which of the following is not a major driver of supply chain performance?

A) Customers
B) Facilities
C) Inventory
D) Transportation
E) Information

Question 15

Companies using seasonal inventory will build up inventory in periods of low demand and store it for periods of high demand when they will not have the capacity to produce all that is demanded.

Question 16

Companies using seasonal inventory will maintain a level inventory increase rate of production for periods of high demand.

Question 17

The major drivers of supply chain performance are customers,facilities,inventory,transportation,and information.

Question 18

The components of inventory decisions include capacity,cycle inventory,safety inventory,seasonal inventory,and sourcing.

Question 19

The two major types of facilities are production sites and storage sites.

Question 20

A company's ability to find a balance between responsiveness and efficiency that best matches the needs of the customer it is targeting is the key to achieving strategic fit.

Question 21

Which component of the supply chain decision-making framework would be established second?

A) Customer strategy
B) Supply chain strategy
C) Supply chain structure
D) Competitive strategy
E) Replenishment strategy

Question 22

Which component of the supply chain decision-making framework would be used to reach the performance level dictated by the supply chain strategy?

A) Customer strategy
B) Supply chain strategy
C) Supply chain structure
D) Competitive strategy
E) Replenishment strategy

Question 23

Which of the following is not an issue companies need to consider in facility location decisions?

A) Quality of workers
B) Product development
C) Proximity to customers and the rest of the network
D) Cost of facility
E) Tax effects

Question 24

Which of the following is not a component of facilities decisions?

A) Warehousing methodology
B) Forecasting methodology
C) Operations methodology
D) Capacity
E) Location

Question 25

The average amount of inventory used to satisfy demand between receipt of supplier shipments is referred to as

A) cycle inventory.
B) safety inventory.
C) seasonal inventory.
D) sourcing.
E) none of the above

Question 26

A facility with little excess capacity

A) will likely be more efficient per unit of product it produces than one with a lot of unused capacity.
B) would be considered a high utilization facility.
C) will have difficulty responding to demand fluctuations.
D) All of the above are true.
E) None of the above are true.

Question 27

Excess capacity

A) allows a facility to be very flexible and to respond to wide swings in the demands placed on it.
B) costs money and therefore can decrease efficiency.
C) requires proximity to customers and the rest of the network.
D) both A and B
E) all of the above

Question 28

The inventory that is built up to counter predictable variability in demand is called

A) cycle inventory.
B) safety inventory.
C) seasonal inventory.
D) sourcing.
E) none of the above

Question 29

The two major types of facilities are

A) distribution sites and storage sites.
B) production sites and distribution sites.
C) production sites and storage sites.
D) retail sites and distribution sites.
E) distribution sites and inventory sites.

Question 30

Which component of the supply chain decision-making framework would be established first?

A) Customer strategy
B) Supply chain strategy
C) Supply chain structure
D) Competitive strategy
E) Replenishment strategy

Question 31

The following warehousing methodology is one in which goods are not actually warehoused in a facility.Instead,trucks from suppliers,each carrying a different type of product,deliver goods to a facility.There the inventory is broken into smaller lots and quickly loaded onto store-bound trucks that carry a variety of products,some from each of the supplier trucks.

A) Warehouse unit storage
B) Stock keeping unit (SKU) storage
C) Job lot storage
D) Cross-docking
E) none of the above

Question 32

Which of the following would be a characteristic of a facility with little excess capacity?

A) Allows a facility to be very flexible and to respond to wide swings in the demands placed on it
B) Costs money and therefore can decrease efficiency
C) Requires proximity to customers and the rest of the network
D) Will likely be more efficient per unit of product it produces
E) none of the above

Question 33

Which of the following is not an issue companies need to consider in facility location decisions?

A) Quality of workers
B) Availability of infrastructure
C) Proximity to customers and the rest of the network
D) Cost of facility
E) All of the above are issues companies need to consider in facility location decisions.

Question 34

Which of the following statements concerning decisions regarding location of facilities is false?

A) Deciding where a company will locate its facilities constitutes a large part of the design of a supply chain.
B) A basic trade-off here is whether to centralize to gain economies of scale or decentralize to become more responsive by being closer to the customer.
C) Companies must also consider a host of issues related to the various characteristics of the local area in which the facility may be situated.
D) All of these statements are true.
E) None of these statements are true.

Question 35

All of the following are components of inventory decisions except

A) capacity.
B) cycle inventory.
C) safety inventory.
D) seasonal inventory.
E) sourcing.

Question 36

All of the following are components of inventory decisions except

A) cycle inventory.
B) safety inventory.
C) seasonal inventory.
D) sourcing.
E) All of the above are components of inventory decisions.

Question 37

Which of the following is not a warehousing methodology?

A) Warehouse unit storage
B) Stock keeping unit (SKU) storage
C) Job lot storage
D) Cross-docking
E) All of the above are warehousing methodologies.

Question 38

The warehousing methodology that uses a traditional warehouse to store all of one type of product together is

A) warehouse unit storage.
B) stock keeping unit (SKU) storage.
C) job lot storage.
D) cross-docking.
E) none of the above

Question 39

Which of the following is a characteristic of a facility with excess capacity?

A) Will likely be more efficient per unit of product it produces than one with a lot of unused capacity
B) Would be very flexible and respond to wide swings in the demands placed on it
C) Would be considered a high utilization facility
D) Will have difficulty responding to demand fluctuations
E) none of the above

Question 40

The warehousing methodology in which all the different types of products needed to perform a particular job or satisfy a particular type of customer are stored together is

A) warehouse unit storage.
B) stock keeping unit (SKU) storage.
C) job lot storage.
D) cross-docking.
E) none of the above

Question 41

Pricing directly affects revenues but can also affect production costs and inventories depending upon its impact on consumer demand.Which of the following is not listed as a metric a manager should track?

A) Inventory turnover
B) Profit margin
C) Days sales outstanding
D) Average sales price

Question 42

The process by which a firm decides how much to charge customers for its goods and services is

A) supply chain coordination.
B) forecasting.
C) aggregate planning.
D) revenue management.
E) pricing.

Question 43

Amazon uses different prices for the products that are purchased from the company - often for the speed of the shipping.What is the name of this pricing scheme?

A) Everyday low pricing
B) High-low pricing
C) Fixed price
D) Menu pricing

Question 44

When all the different stages of a supply chain work toward the objective of maximizing total supply chain profitability,rather than each stage devoting itself to its own profitability without considering total supply chain profit,it is known as

A) supply chain coordination.
B) forecasting.
C) aggregate planning.
D) revenue management.
E) pricing.

Question 45

The use of differential pricing over time or customer segments to maximize profits from a limited set of supply chain assets is

A) supply chain coordination.
B) forecasting.
C) aggregate planning.
D) revenue management.
E) pricing.

Question 46

The set of business processes required to purchase goods and services is known as

A) cycle inventory.
B) safety inventory.
C) seasonal inventory.
D) sourcing.
E) none of the above

Question 47

Cycle inventory is used because

A) the world is perfectly predictable.
B) demand is uncertain and may exceed expectations.
C) it involves making a trade-off between the costs of having too much inventory and the costs of losing sales due to not having enough inventory.
D) it focuses on processes that are external to the firm.
E) it focuses on processes that are internal to the firm.

Question 48

The ________ strategy results in a peak during the discount week,often followed by a steep drop in demand during the following weeks.

A) Everyday low pricing
B) High-low pricing
C) Fixed price
D) Menu pricing

Question 49

Which of the following are key components of information that must be analyzed to increase efficiency and improve effectiveness in a supply chain?

A) Software selection
B) Source selection
C) Warehouse selection
D) Forecasting and aggregate planning
E) none of the above

Question 50

Which of the following are technologies that share and analyze information in the supply chain?

A) Internet
B) Enterprise Data Planning (EDP)
C) Electronic Resource Interchange (ERI)
D) Chain Management (CM) software
E) none of the above

Question 51

Seasonal inventory should be used when

A) a company can rapidly change the rate of its production system at a very low cost.
B) changing the rate of production is expensive (e.g., when workers must be hired or fired).
C) adjusting to a period of low demand without incurring large costs.
D) the world is perfectly predictable.
E) production rate is flexible.

Question 52

Sourcing decisions directly impact the cost of goods sold and accounts payable.Which of the following is NOT listed as a source-related metric that a manager should track?

A) Average selling price
B) Range of purchase price
C) Days payable outstanding
D) Average purchase quantity

Question 53

Which of the following are key components of transportation decisions when designing and operating a supply chain?

A) Mode of transportation
B) Route and network selection
C) In-house or outsource
D) all of the above
E) none of the above

Question 54

Which of the following are technologies that share and analyze information in the supply chain?

A) Electronic Data Interchange (EDI)
B) Internet
C) Enterprise Resource Planning (ERP)
D) Supply Chain Management (SCM) software
E) all of the above

Question 55

Which of the following are key components of transportation decisions when designing and operating a supply chain?

A) Software selection
B) Mode of transportation
C) Source selection
D) Warehouse selection
E) none of the above

Question 56

________ measures the incremental costs that are independent of the size of the order.

A) Average sale price
B) Incremental variable cost per unit
C) Incremental fixed cost per order
D) Incremental indirect cost per order

Question 57

The art and science of making projections about what future demand and conditions will be is

A) supply chain coordination.
B) forecasting.
C) aggregate planning.
D) revenue management.
E) pricing.

Question 58

Transforming forecasts into plans of activity to satisfy the projected demand is known as

A) supply chain coordination.
B) forecasting.
C) aggregate planning.
D) revenue management.
E) pricing.

Question 59

The inventory held in case demand exceeds expectation in order to counter uncertainty is called

A) cycle inventory.
B) safety inventory.
C) seasonal inventory.
D) sourcing.
E) none of the above

Question 60

Sourcing involves

A) deciding the tasks that will be outsourced and those that will be performed within the firm.
B) deciding whether to source from a single supplier or a portfolio of suppliers.
C) identifying the set of criterion that will be used to select suppliers and measure their performance.
D) selecting suppliers and negotiating contracts with them.
E) all of the above

Question 61

________ typically measures the cost of bringing product into a facility as a percentage of sales or cost of goods sold (COGS).

A) Average outbound transportation cost
B) Average inbound transportation cost
C) Average incoming shipment size
D) Average inbound transportation cost per shipment

Question 62

Explain the basic trade-off between responsiveness and efficiency for each of the major drivers of supply chain performance.

Question 63

________ is NOT a key sourcing decision that is made within a firm?

A) Outsource
B) Procurement
C) Supplier selection
D) Produce high quality products

Question 64

Blue Nile is an online retailer of diamonds that has used responsive transportation to ship diamonds to customers in the United States,Canada,and several countries in Europe and Asia.Which is the mode of transportation used with this strategy?

A) Sea
B) Rail
C) Internet
D) Air

Question 65

Cisco has outsourced almost all of its manufacturing.It does,however,have a sourcing strategy that varies by product type.For low-end products such as routers for home networks,Cisco aims for efficiency.These routers are produced and packed in what country that supports this strategy?

A) Italy
B) China
C) United States
D) Canada

Question 66

List and define the four major drivers of supply chain performance.

Question 67

________ identifies the difference between the planned production/inventories and the actual values.

A) Supplier reliability
B) Forecast error
C) Variance from plan
D) Supply quality

Question 68

Explain the supply chain decision-making framework and the role of the four major drivers.

Question 69

________ measures the average time between when an order is placed and the product arrives.

A) Supplier reliability
B) Supply lead time
C) Fraction of on-time deliveries
D) Supply quality

Question 70

Explain the role of each of the major drivers of supply chain performance in the competitive strategy.

Question 71

In the textbook,it mentions that Wal-Mart has mandated the use of a specific technology by its top 100 suppliers at the level of product cases.What is the technology?

A) RFID
B) ERP
C) SCM
D) EDI

Question 72

Explain the role of each of the major drivers of supply chain performance.