Deck 11: Global Supply Chain Procurement and Distribution

Question 1

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

Answer 1

True

Question 2

Purchasing from a supplier is called procurement.

Answer 2

True

Question 3

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

Answer 3

True

Question 4

Logistics includes distribution and transportation activities within a supply chain.

Question 5

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

Question 6

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

Question 7

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

Question 8

Procurement involves the selection of a supplier.

Question 9

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

Question 10

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

Question 11

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 12

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

Question 13

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

Question 14

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

Question 15

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

Question 16

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

Question 17

Distribution includes both warehousing and transportation functions.

Question 18

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

Question 19

Outsourcing is a relatively new phenomenon used strictly by multinationals.

Question 20

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

Question 21

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

Question 22

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

Question 23

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

Question 24

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

Question 25

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

Question 26

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

Question 27

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

Question 28

Distribution outsourcing allows companies to focus on their core competencies.

Question 29

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

Question 30

Distributors deal only in very large quantities providing infrequent deliveries.

Question 31

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

Question 32

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

Question 33

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

Question 34

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

Question 35

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

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

Question 36

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

Question 37

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

Question 38

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

Question 39

_________ 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 40

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

Question 41

Which mode of transportation transports products in liquid form?

A)Pipeline
B)Ocean
C)Both a and b are correct
D)Airline

Question 42

Benefits of e-procurement include all of the following except

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

Question 43

The selection of suppliers is called

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

Question 44

Partnerships require suppliers to provide

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

Question 45

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 46

With vendor-managed inventory

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

Question 47

E-procurement is most often used for

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

Question 48

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

A)Warehouse optimization
B)Order management
C)Vendor management
D)Custom labeling and packaging

Question 49

Distribution includes all of the following activities except

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

Question 50

Distribution centers usually ship product to

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

Question 51

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 52

Companies often outsource to

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

Question 53

Which of the following countries is not an important U.S.trading partner?

A)Canada
B)Mexico
C)Japan
D)Russia

Question 54

The mode of transportation that utilizes the most containers is

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

Question 55

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 56

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 57

The most common mode of transporting products is

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

Question 58

International trade specialists include all of the following except

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

Question 59

Landed cost includes

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

Question 60

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

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

Question 61

List and discuss some of the forces driving globalization.

Question 62

List several of the advantages associated with outsourcing.

Question 63

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

Question 64

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

Question 65

Identify some of the obstacles to global supply chain management.

Question 66

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

Question 67

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.
D)require suppliers to build facilities near the customer.

Question 68

What are the advantages associated with e-procurement?

Question 69

List and discuss the seven different modes of transportation.