Deck 7: Supply Chain Management

Question 1

The term supply chain generally refers to all the activities involved in supplying an end user with a product or service.

Answer 1

True

Question 2

__________ inventories exist because materials must be moved from one location to another.

A)Buffer
B)Anticipation
C)Transit
D)Cycle

Answer 2

C

Question 3

Organizations that process natural or basic resources as raw materials or other essential inputs to obtain their outputs will locate near their resources if one of the following conditions holds:

A)High economies of scale exist for the product
B)The raw material can be shipped long distance before being processed
C)There is a large loss in size or weight during processing.
D)Both A and C

Answer 3

D

Question 4

Which of the following is TRUE about the bullwhip effect?

A)Variability in demand increases from the factory stage downstream to the customer stage
B)This cycle is prevalent in just about every industry
C)Lead times between the stages of the supply chain tend to be very short
D)Information lags stemming from large lot sizes with infrequent orders may be a cause

Question 5

Moore's law states that:

A)The value of a network increases with the square of the number of elements connected to it
B)Computing power doubles every 18-24 months
C)If anything can go wrong,it will,and usually at the most inappropriate moment
D)A project will always take longer than expected,even after taking into account Metcalfe's Law

Question 6

Suppose that you have found the AAIV (aggregate inventory value on average for the year)to be $400 million.The daily cost of good sold was estimated at $80 million,what is the estimated days of supply?

A)5
B)8
C)32
D)48

Question 7

Purchasing tends to follow three practices; which of the following is NOT one of them?

A)They leverage their buying power
B)They work with and help suppliers reduce costs
C)They commit to a small number of dependable suppliers
D)All of the above are practices followed by purchasing in highly effective organizations

Question 8

3PL companies:

A)Offer their products in a most efficient manner
B)Are also known as third-place location firms
C)Have chosen to outsource at least portions of their supply chain management function
D)Provide services including handling product distribution and returns,receiving materials and managing warehouses

Question 9

What is the least expensive transportation mode?

A)Air
B)Trucking
C)Railroads
D)Water

Question 10

Which of the following statements about Supply Chain Management (SCM)is correct?

A)SCM programs are putting ever greater emphasis on the finance function
B)SCM coordinates and integrates several activities into a process by linking the most important partners in the chain
C)The goal of SCM is to deliver the right product at the right time,while yielding the lowest possible costs
D)SCM enables manufacturers to actively plan and collaborate across a distributed supply chain

Question 11

Water is a good transportation mode for small,high-value,or perishable items.

Question 12

The inventory turnover is calculated using the annual cost of goods sold and the aggregate inventory value on average.

Question 13

What term describes the execution of business transactions in a paperless environment,primarily through the Internet?

A)E-business
B)Electronic data interchange
C)Electronic commerce
D)Bar coding

Question 14

A bullwhip effect occurs more often when the sole transmission of information occurs by handoffs from one link of the chain to the next.

Question 15

Logistics consist(s)of the following,EXCEPT:

A)Compensation and incentives
B)Storage and warehousing
C)Transportation and information processing
D)Inventories and distribution

Question 16

Which of the following is FALSE about supply chains?

A)Just-in-time deliveries (JIT)and lean manufacturing dictate a demand chain
B)When customers of a service are also suppliers,they should be attracted
C)A supply chain is suggestive of a system of production in which the customer "pulls" the product
D)Suppliers that are not customers must be chosen carefully

Question 17

Which of the following is NOT a basic area of consideration in supplier management?

A)Supplier relationships
B)Selection of suppliers
C)Cross-docking
D)Certification and auditing

Question 18

Which of the following is NOT a factor that is increasing the need to better manage the supply chain?

A)Optimization of their own value by most segments in the supply chain
B)Global competition and outsourcing
C)E-commerce and telecommunications
D)Outsourcing and shorter life cycles

Question 19

__________ may be thought of as the ability of one organization's computer to communicate with another's computer.

A)E-business
B)Electronic data interchange
C)E-commerce
D)Redundancy

Question 20

Which of the following costs includes taxes,insurance on buildings,depreciation of buildings,and maintenance and repairs?

A)Capital costs
B)Risk costs
C)Ordering costs
D)Storage costs

Question 21

Increasing global __________ is a major factor driving the need to better manage the supply chain.

Question 22

Enterprise resource planning systems are designed to collect and interpret customer-based data.

Question 23

Logistics includes the responsibility for acquiring the goods and services the organization needs,by any means.

Question 24

Some outputs such as dams,roads,buildings and bridges may be relatively __________.

Question 25

Some benefits of electronic data interchange include less redundancy,improved customer service,and better order tracing.

Question 26

Air transport can significantly reduce inventory and warehousing costs,as well as improve customer service.

Question 27

To ensure that contracted supplies will be available when needed,organizations periodically conduct supplier __________ of their vendors,checking for potential production or delivery problems,quality assurance,design,improvement procedures and corrective actions.

Question 28

Under sole-sourcing arrangements,customers involve suppliers from the design stage,asking for larger deliveries of higher quality items in large batches that enable greater savings.

Question 29

Risk costs include interest on money invested in inventory and in the land,buildings,and equipment necessary to hold and maintain the inventory.

Question 30

Intranets are private networks to allow the organization to securely interact with external parties.