Deck 12: Supply Chain Integration

Question 1

A common disruption of the supply chain resulting from internal causes is demand volume changes.

Answer 1

False

Question 2

The bullwhip effect says that in any supply chain,the ordering patterns experience increasing variance as you move closer to the end customer.

Answer 2

False

Question 3

A supply chain can be thought of as a river that flows from raw material suppliers to consumers.

Answer 3

True

Question 4

Supply chain integration is the effective coordination of supply chain processes through the seamless flow of information to suppliers,but does not include customers,such as distributors and retailers.

Question 5

SKUs with lower volumes and higher weekly variability may be best served with an assemble-to-order or make-to-order supply chain design.

Question 6

Value analysis is a systematic effort to reduce the cost or improve the performance of a service or product.

Question 7

Once certified,a supplier can be used by the purchasing department without the purchaser having to make background checks.

Question 8

Concurrent engineering is the term used to describe a firm's development of a new product after it has been discovered that a competitor is engineering a similar product for launch.

Question 9

A strain is placed on the supply chain during the ramp-up stage of the development process due to changing volumes,quality issues and last minute design changes.

Question 10

A common disruption of the external supply chain is product and service mix changes.

Question 11

A common disruption of the external supply chain is engineering changes.

Question 12

In presourcing,suppliers are selected early in the concept-development stage.

Question 13

The SCOR model focuses on the supply chain processes of planning,making,sourcing,delivering,and returning.

Question 14

SKUs with higher volumes and lower weekly variability may be best served with a make- to-stock supply chain design.

Question 15

The finished goods of one firm may actually be the raw materials for another firm.

Question 16

Supply chain integration is the effective coordination of supply chain processes through the seamless flow of information to suppliers,up and down the supply chain

Question 17

The SCOR model provides guidelines for how materials are to be delivered along a supply chain.

Question 18

A common disruption of the supply chain resulting from internal causes is order batching.

Question 19

Concurrent engineering helps firms avoid the costly mismatch between the design of a new offering and the capability of the processes required to produce it.

Question 20

The ramp-up stage of the development process precedes the full launch stage.

Question 21

The most used form of e-purchasing today is electronic data interchange.

Question 22

The cost of equipment,labor,facilities and maintenance must all be considered when a firm decides to use a contract carrier for its distribution.

Question 23

Electronic Data Interchange enables the transmission of routine,standardized business documents from computer to computer over telephone or direct leased lines.

Question 24

Reducing the number of suppliers for an item carries an increased risk of interruption in supply.

Question 25

The bullwhip effect is characterized by:

A)ordering patterns that experience increasing variance as you proceed downstream in the chain.
B)ordering patterns that experience increasing variance as you proceed upstream in the chain.
C)purchasing patterns that experience increasing variance downstream in the chain.
D)purchasing patterns that experience decreasing variance as you proceed upstream in the chain.

Question 26

Which of the following changes would decrease the likelihood of the bullwhip effect?

A)changing the mix of items in an order
B)sending partial shipments of an order
C)instituting a policy of no discounts or promotions
D)sending late deliveries of an order

Question 27

Early supplier involvement is a program that allows suppliers to fill orders prior to the customer placing them.

Question 28

The competitive orientation to supplier relations is that the buyer and supplier are partners.

Question 29

Drop shipping occurs when a retailer passes customer orders directly to a wholesaler or manufacturer,which then ships the order directly to the customer with the retailer's label on it.

Question 30

Using rail to move large quantities of goods is relatively cheap,but transit times are long and often variable.

Question 31

A catalog hub is a central distribution point where buyers may purchase items directly from manufacturers before the items are shipped to retailers.

Question 32

In a competitive orientation to negotiations between buyer and supplier,the buyer does not always possess the power in the relationship-the supplier sometimes holds the power and can exercise this power during negotiations with the buyer.

Question 33

A cross-docking warehouse holds inventory from manufacturers until retailers are prepared to sell the items.

Question 34

Green purchasing involves identifying,assessing,and managing the flow of environmental waste and finding ways to reduce it and minimize its impact on the environment.

Question 35

A buyer has more purchasing power when fewer substitutes are available.

Question 36

Which of the following is NOT a component of the supply chain?

A)order fulfillment
B)materials
C)customer relationship
D)competitors

Question 37

Vendor-managed inventories are an example of the forward-placement tactic.

Question 38

An electronic market that brings together textbook sellers,office supply companies,apparel vendors,and students is an example of an exchange.

Question 39

Which of the following changes would increase the likelihood of a supply chain experiencing the bullwhip effect?

A)engineering changes to the design of a product
B)instituting a more accurate materials management information system
C)closely coordinating promotions with the internal marketing department and suppliers
D)using a more reliable delivery company

Question 40

The order-fulfillment process involves the activities to deliver a product or service to the customer.

Question 41

Which of the following is NOT a stage in the New Service / Product Development Process?

A)development
B)design
C)maintenance
D)analysis

Question 42

A new product development team that is composed of product and process engineers,marketers,quality specialists,and buyers that work together to make sure the new product can actually be built is engaging in:

A)concurrent engineering.
B)joint application development.
C)reverse logistics.
D)core process design.

Question 43

Use the following to answer the questions below.
The Burdell Wheel and Tire Company assembles tires to wheel rims for use on cars during manufacture of vehicles by the automotive industry.Burdell wants to locate a low-cost supplier for the tires he uses in his assembly operation.The supplier will be selected based on total annual cost to supply Burdell's needs.Burdell's annual requirements are for 25,000 tires,and the company operates 250 days a year.The following data are available for two suppliers being considered.

Refer to the instruction above.What are the annual inventory costs if the lower inventory cost supplier is selected?

A)$5,220
B)$9,600
C)$6,600
D)$6,320

Question 44

Use the following to answer the questions below.
The Burdell Wheel and Tire Company assembles tires to wheel rims for use on cars during manufacture of vehicles by the automotive industry.Burdell wants to locate a low-cost supplier for the tires he uses in his assembly operation.The supplier will be selected based on total annual cost to supply Burdell's needs.Burdell's annual requirements are for 25,000 tires,and the company operates 250 days a year.The following data are available for two suppliers being considered.

Refer to the instruction above.How many shipments per year are required if Irmo Auto is the supplier selected?

A)1,000
B)750
C)25
D)100

Question 45

Use the following to answer the questions below.
The Burdell Wheel and Tire Company assembles tires to wheel rims for use on cars during manufacture of vehicles by the automotive industry.Burdell wants to locate a low-cost supplier for the tires he uses in his assembly operation.The supplier will be selected based on total annual cost to supply Burdell's needs.Burdell's annual requirements are for 25,000 tires,and the company operates 250 days a year.The following data are available for two suppliers being considered.

Refer to the instruction above.What are the total annual costs if Lexington Tire is the supplier selected?

A)$791,600
B)$792,600
C)$772,320
D)$769,320

Question 46

The SCOR model requires a(n):

A)three-tier supply chain.
B)point of reference.
C)make-to-order or assemble-to-order product.
D)process view.

Question 47

Which of the following is NOT an internal cause of supply chain disruptions?

A)engineering changes
B)batching of orders
C)service or product promotions
D)underfilled shipments

Question 48

The stage of new product or service development that links the creation of new services or products to the corporate strategy of the firm is called:

A)design.
B)analysis.
C)development.
D)full launch.

Question 49

The SCOR model focuses on the basic supply chain processes of:

A)source,control,operate,return.
B)plan source,make deliver,return.
C)purchase,operate,control,logistics.
D)operations,marketing,finance.

Question 50

One source of disruption caused by the internal supply chain is:

A)forecast error.
B)underfilled shipments.
C)volume changes.
D)late deliveries.

Question 51

One source of disruption caused by the external supply chain is:

A)product or sales promotions.
B)new product or service introduction.
C)late deliveries.
D)engineering changes.

Question 52

Use the following to answer the questions below.
The Burdell Wheel and Tire Company assembles tires to wheel rims for use on cars during manufacture of vehicles by the automotive industry.Burdell wants to locate a low-cost supplier for the tires he uses in his assembly operation.The supplier will be selected based on total annual cost to supply Burdell's needs.Burdell's annual requirements are for 25,000 tires,and the company operates 250 days a year.The following data are available for two suppliers being considered.

Refer to the instruction above.What are the total annual costs if Irmo Auto is the supplier selected?

A)$791,600
B)$792,600
C)$773,220
D)$769,320

Question 53

Use the following to answer the questions below.
The Burdell Wheel and Tire Company assembles tires to wheel rims for use on cars during manufacture of vehicles by the automotive industry.Burdell wants to locate a low-cost supplier for the tires he uses in his assembly operation.The supplier will be selected based on total annual cost to supply Burdell's needs.Burdell's annual requirements are for 25,000 tires,and the company operates 250 days a year.The following data are available for two suppliers being considered.

Refer to the instruction above.What are the annual material savings available when comparing the two suppliers?

A)$25,000
B)$150,000
C)$725,000
D)$3,000

Question 54

Use the following to answer the questions below.
The Burdell Wheel and Tire Company assembles tires to wheel rims for use on cars during manufacture of vehicles by the automotive industry.Burdell wants to locate a low-cost supplier for the tires he uses in his assembly operation.The supplier will be selected based on total annual cost to supply Burdell's needs.Burdell's annual requirements are for 25,000 tires,and the company operates 250 days a year.The following data are available for two suppliers being considered.

Refer to the instruction above.What are the annual material costs for Lexington Tire?

A)$60,000
B)$750,000
C)$725,000
D)$3,000

Question 55

Which one of the following statements is TRUE about purchasing?

A)Purchasing's primary role is to satisfy the firm's long-term supply needs.
B)Purchasing's primary role should be placing and tracking orders.
C)Purchasing's primary role is to negotiate lower prices.
D)Purchasing's primary role is to negotiate prices and delivery dates.

Question 56

Which of the following is NOT an external cause of supply chain disruptions?

A)late deliveries
B)new service or product introductions
C)customer service or product mix changes
D)underfilled shipments

Question 57

The stage of new service or product development at which personnel are trained and some pilot runs can be conducted to look for possible problems in production is called:

A)design.
B)analysis.
C)development.
D)full launch.

Question 58

Use the following to answer the questions below.
The Burdell Wheel and Tire Company assembles tires to wheel rims for use on cars during manufacture of vehicles by the automotive industry.Burdell wants to locate a low-cost supplier for the tires he uses in his assembly operation.The supplier will be selected based on total annual cost to supply Burdell's needs.Burdell's annual requirements are for 25,000 tires,and the company operates 250 days a year.The following data are available for two suppliers being considered.

Refer to the instruction above.What are the annual shipping savings available when comparing the two suppliers?

A)$25,000
B)$18,000
C)$72,500
D)$7,000

Question 59

Possible causes of disruption due to internal supply chain problems are:

A)late deliveries.
B)machine breakdowns or inexperienced workers.
C)product and service mix changes.
D)underfilled shipments.

Question 60

The product development team ensures compatibility of the proposed product with corporate strategy and regulatory standards in the:

A)design stage.
B)analysis stage.
C)development stage.
D)full launch stage.

Question 61

Use the following to answer the questions below.
The Burdell Wheel and Tire Company has completed a total cost analysis for two suppliers of tires to support their business.They also consider delivery speed,consistent quality and environmental sensitivity in their selection process.Each criterion is given a weight (total = 100 points),and each supplier is scored on each criterion (1 = poor,10 = excellent).The data are shown in the following table.

Refer to the instruction above.Using the preference matrix approach for selecting suppliers,what is Lexington Tire's total weighted score?

A)570
B)100
C)23
D)605

Question 62

The practice of selecting suppliers and giving them significant responsibility for the design of certain components or systems of the product is called:

A)value analysis.
B)locus of control.
C)presourcing.
D)vendor-managed inventories.

Question 63

Use the following to answer the questions below.
The Steele Bike Company has completed a total cost analysis for two suppliers of bicycle frames to support their business.They also consider on-time speed,top quality and customization in their selection process.Each criterion is given a weight (total = 100 points),and each supplier is scored on each criterion (1 = poor,10 = excellent).The data are shown in the following table.

Refer to the instruction above.Using the preference matrix approach for selecting suppliers,what is State's total weighted score?

A)570
B)100
C)23
D)590

Question 64

Use the following to answer the questions below.
The Steele Bike Company assembles bicycles for a major retail toy outlet.The main purchase is bicycle frames for making these bicycles.Dan Steele,the owner,wants to locate a low-cost supplier for the frames used in this assembly operation.The supplier will be selected based on total annual cost to supply Steele's needs.Annual requirements are for 100,000 frames,and the company operates 200 days a year.Two suppliers,Acme and State,have quoted the same price for the frames,but quantities,lead times and shipping costs are considerably different.The following data are available for the two suppliers.

Refer to the instruction above.The high-cost supplier has indicated that if Steele will select them as the supplier of choice,they will not charge for shipping.How does this change the decision on bicycle frame suppliers?

A)The high-cost supplier is now the low-cost supplier,and becomes the frame supplier for Steele.
B)The suppliers are now equal cost,and Steele can select either supplier.
C)It doesn't change the decision-they are still the high-cost supplier.
D)More information is required to make this decision.

Question 65

Use the following to answer the questions below.
The Steele Bike Company assembles bicycles for a major retail toy outlet.The main purchase is bicycle frames for making these bicycles.Dan Steele,the owner,wants to locate a low-cost supplier for the frames used in this assembly operation.The supplier will be selected based on total annual cost to supply Steele's needs.Annual requirements are for 100,000 frames,and the company operates 200 days a year.Two suppliers,Acme and State,have quoted the same price for the frames,but quantities,lead times and shipping costs are considerably different.The following data are available for the two suppliers.

Refer to the instruction above.What are the annual material costs for Acme?

A)$550,000
B)$750,000
C)$3,900,000
D)$35,000

Question 66

Use the following to answer the questions below.
The Burdell Wheel and Tire Company assembles tires to wheel rims for use on cars during manufacture of vehicles by the automotive industry.Burdell wants to locate a low-cost supplier for the tires he uses in his assembly operation.The supplier will be selected based on total annual cost to supply Burdell's needs.Burdell's annual requirements are for 25,000 tires,and the company operates 250 days a year.The following data are available for two suppliers being considered.

Refer to the instruction above.The high-cost supplier desperately wants the Burdell Company business.They have indicated that if Burdell will select them as their supplier,they will not charge for shipping.How does this change the decision on tire suppliers?

A)The high-cost supplier is now lower,and becomes the tire supplier for Burdell.
B)The suppliers are now equal cost,and Burdell can select either supplier.
C)It doesn't change the decision-they are still the high-cost supplier.
D)More information is required to make this decision.

Question 67

Use the following to answer the questions below.
The Steele Bike Company assembles bicycles for a major retail toy outlet.The main purchase is bicycle frames for making these bicycles.Dan Steele,the owner,wants to locate a low-cost supplier for the frames used in this assembly operation.The supplier will be selected based on total annual cost to supply Steele's needs.Annual requirements are for 100,000 frames,and the company operates 200 days a year.Two suppliers,Acme and State,have quoted the same price for the frames,but quantities,lead times and shipping costs are considerably different.The following data are available for the two suppliers.

Refer to the instruction above.What are the total annual costs if State is the supplier selected?

A)$4,026,450
B)$110,450
C)$4,001,050
D)$4,016,550

Question 68

Use the following to answer the questions below.
The Burdell Wheel and Tire Company has completed a total cost analysis for two suppliers of tires to support their business.They also consider delivery speed,consistent quality and environmental sensitivity in their selection process.Each criterion is given a weight (total = 100 points),and each supplier is scored on each criterion (1 = poor,10 = excellent).The data are shown in the following table.

Refer to the instruction above.Using the preference matrix approach for selecting suppliers,what is Irmo Auto's total weighted score?

A)570
B)100
C)24
D)605

Question 69

Use the following to answer the questions below.
The Steele Bike Company assembles bicycles for a major retail toy outlet.The main purchase is bicycle frames for making these bicycles.Dan Steele,the owner,wants to locate a low-cost supplier for the frames used in this assembly operation.The supplier will be selected based on total annual cost to supply Steele's needs.Annual requirements are for 100,000 frames,and the company operates 200 days a year.Two suppliers,Acme and State,have quoted the same price for the frames,but quantities,lead times and shipping costs are considerably different.The following data are available for the two suppliers.

Refer to the instruction above.How many shipments per year are required if State is the supplier selected?

A)13.3
B)40
C)200
D)10

Question 70

Use the following to answer the questions below.
The Burdell Wheel and Tire Company assembles tires to wheel rims for use on cars during manufacture of vehicles by the automotive industry.Burdell wants to locate a low-cost supplier for the tires he uses in his assembly operation.The supplier will be selected based on total annual cost to supply Burdell's needs.Burdell's annual requirements are for 25,000 tires,and the company operates 250 days a year.The following data are available for two suppliers being considered.

Refer to the instruction above.What are the total annual savings if the lower cost supplier is selected?

A)$1,000
B)$19,380
C)$3,000
D)$6,320

Question 71

Use the following to answer the questions below.
The Steele Bike Company assembles bicycles for a major retail toy outlet.The main purchase is bicycle frames for making these bicycles.Dan Steele,the owner,wants to locate a low-cost supplier for the frames used in this assembly operation.The supplier will be selected based on total annual cost to supply Steele's needs.Annual requirements are for 100,000 frames,and the company operates 200 days a year.Two suppliers,Acme and State,have quoted the same price for the frames,but quantities,lead times and shipping costs are considerably different.The following data are available for the two suppliers.

Refer to the instruction above.Based on your Total Cost Analysis,which supplier should be selected if the lower cost supplier is chosen?

A)Acme
B)State
C)Since the costs are the same,either supplier could be selected.
D)More information is needed to answer this question.

Question 72

Use the following to answer the questions below.
The Steele Bike Company assembles bicycles for a major retail toy outlet.The main purchase is bicycle frames for making these bicycles.Dan Steele,the owner,wants to locate a low-cost supplier for the frames used in this assembly operation.The supplier will be selected based on total annual cost to supply Steele's needs.Annual requirements are for 100,000 frames,and the company operates 200 days a year.Two suppliers,Acme and State,have quoted the same price for the frames,but quantities,lead times and shipping costs are considerably different.The following data are available for the two suppliers.

Refer to the instruction above.What are the total annual savings if the lower cost supplier is selected?

A)$1,000
B)$12,500
C)$9,400
D)$14,900

Question 73

Use the following to answer the questions below.
The Steele Bike Company assembles bicycles for a major retail toy outlet.The main purchase is bicycle frames for making these bicycles.Dan Steele,the owner,wants to locate a low-cost supplier for the frames used in this assembly operation.The supplier will be selected based on total annual cost to supply Steele's needs.Annual requirements are for 100,000 frames,and the company operates 200 days a year.Two suppliers,Acme and State,have quoted the same price for the frames,but quantities,lead times and shipping costs are considerably different.The following data are available for the two suppliers.

Refer to the instruction above.What are the annual inventory costs if the lower inventory cost supplier is selected?

A)$56,550
B)$96,500
C)$21,450
D)$7,800

Question 74

Use the following to answer the questions below.
The Steele Bike Company assembles bicycles for a major retail toy outlet.The main purchase is bicycle frames for making these bicycles.Dan Steele,the owner,wants to locate a low-cost supplier for the frames used in this assembly operation.The supplier will be selected based on total annual cost to supply Steele's needs.Annual requirements are for 100,000 frames,and the company operates 200 days a year.Two suppliers,Acme and State,have quoted the same price for the frames,but quantities,lead times and shipping costs are considerably different.The following data are available for the two suppliers.

Refer to the instruction above.What are the annual material savings available when comparing the two suppliers?

A)$7,800
B)$390,000
C)$750,000
D)The materials are the same cost from either supplier

Question 75

Use the following to answer the questions below.
The Steele Bike Company has completed a total cost analysis for two suppliers of bicycle frames to support their business.They also consider on-time speed,top quality and customization in their selection process.Each criterion is given a weight (total = 100 points),and each supplier is scored on each criterion (1 = poor,10 = excellent).The data are shown in the following table.

Refer to the instruction above.Using the preference matrix (total weighted score)approach for selecting suppliers,which supplier should Steele select?

A)State
B)Acme
C)Either is acceptable-their preference matrix scores are the same.
D)More information is needed to make this decision.

Question 76

Use the following to answer the questions below.
The Steele Bike Company assembles bicycles for a major retail toy outlet.The main purchase is bicycle frames for making these bicycles.Dan Steele,the owner,wants to locate a low-cost supplier for the frames used in this assembly operation.The supplier will be selected based on total annual cost to supply Steele's needs.Annual requirements are for 100,000 frames,and the company operates 200 days a year.Two suppliers,Acme and State,have quoted the same price for the frames,but quantities,lead times and shipping costs are considerably different.The following data are available for the two suppliers.

Refer to the instruction above.What are the annual shipping savings available when comparing the two suppliers?

A)$25,000
B)$10,000
C)$7,500
D)Shipping costs are the same from either supplier

Question 77

Use the following to answer the questions below.
The Burdell Wheel and Tire Company has completed a total cost analysis for two suppliers of tires to support their business.They also consider delivery speed,consistent quality and environmental sensitivity in their selection process.Each criterion is given a weight (total = 100 points),and each supplier is scored on each criterion (1 = poor,10 = excellent).The data are shown in the following table.

Refer to the instruction above.Using the preference matrix approach for selecting suppliers,which supplier should Burdell select? total weighted score?

A)Lexington Tire
B)Irmo Auto
C)Neither is acceptable-their preference matrix scores are not high enough to be selected.
D)More information is needed to make this decision.

Question 78

Use the following to answer the questions below.
The Steele Bike Company has completed a total cost analysis for two suppliers of bicycle frames to support their business.They also consider on-time speed,top quality and customization in their selection process.Each criterion is given a weight (total = 100 points),and each supplier is scored on each criterion (1 = poor,10 = excellent).The data are shown in the following table.

Refer to the instruction above.Using the preference matrix approach for selecting suppliers,what is Acme's total weighted score?

A)100
B)570
C)24
D)590

Question 79

Use the following to answer the questions below.
The Steele Bike Company assembles bicycles for a major retail toy outlet.The main purchase is bicycle frames for making these bicycles.Dan Steele,the owner,wants to locate a low-cost supplier for the frames used in this assembly operation.The supplier will be selected based on total annual cost to supply Steele's needs.Annual requirements are for 100,000 frames,and the company operates 200 days a year.Two suppliers,Acme and State,have quoted the same price for the frames,but quantities,lead times and shipping costs are considerably different.The following data are available for the two suppliers.

Refer to the instruction above.What are the total annual costs if Acme is the supplier selected?

A)$4,010,450
B)$113,550
C)$4,001,050
D)$4,011,550

Question 80

Use the following to answer the questions below.
The Burdell Wheel and Tire Company assembles tires to wheel rims for use on cars during manufacture of vehicles by the automotive industry.Burdell wants to locate a low-cost supplier for the tires he uses in his assembly operation.The supplier will be selected based on total annual cost to supply Burdell's needs.Burdell's annual requirements are for 25,000 tires,and the company operates 250 days a year.The following data are available for two suppliers being considered.

Refer to the instruction above.Based on your Total Cost Analysis,which supplier should be selected if the lower cost supplier is chosen?

A)Lexington Tire
B)Irmo Auto
C)Since the costs are the same,either supplier could be selected.
D)More information is needed to answer this question.