Question 1

__________ is a classic example of a manufacturer who excelled at utilizing a make-to-order approach to produce their products after receiving customer orders.

Accepted Answer

Dell Computer is known for its make-to-order approach, allowing customers to customize their PCs, which are then built and shipped directly to them.

Question 2

Which of the following would not be a characteristic of make-to-order (MTO) manufacturing?

Accepted Answer

Make-to-order manufacturing typically does not experience more stock-outs because products are made based on specific customer orders, reducing the need for holding inventory.

Question 3

Which of the following would not be a characteristic of make-to-stock (MOS) manufacturing?

Accepted Answer

Typically shorter delivery time is not a characteristic of make-to-stock (MOS) manufacturing.

Question 4

A component of a MRP system that would provide the following information about a product such as an electric toothbrush (one electric toothbrush requires 1 set of bristles, 1 electric motor, 2 batteries, 1 plastic casing, 3 brand labels and 4 screws), would be called:

Accepted Answer

The Bill of Materials (BOM) is a comprehensive list of raw materials, components, and assemblies required to construct, manufacture, or repair a product or service. It provides detailed information about the components needed for a product, such as an electric toothbrush.

Question 5

Reduction of waste is central to lean manufacturing. The earliest and most well-known proponent of the concept of waste in manufacturing was:

Accepted Answer

Toyota Motor Company, specifically through the Toyota Production System, is the earliest and most well-known proponent of the concept of waste reduction in manufacturing.

Question 6

In lean manufacturing, waste is categorized according to their sources. One of the eight wastes in lean manufacturing identified by company engineers was producing more than required by demand, creating excess inventory and making it difficult to track errors. The term used to represent this type of waste is called:

Accepted Answer

Overproduction refers to producing more than what is needed by demand, leading to excess inventory and potential tracking issues.

Question 7

Lean manufacturing consists of a set of managerial practices which may be grouped into four broad categories. Which of the following is not one of those categories?

Accepted Answer

Customer relationship management is not one of the four broad categories of lean manufacturing practices. Lean manufacturing focuses on just-in-time, total preventive maintenance, total quality management, and human resource management.

Question 8

Success in agile manufacturing requires firms to excel in six different areas. Which of the following areas would be the most important in implementing agile manufacturing successfully?

Accepted Answer

Customer orientation is crucial in agile manufacturing as it ensures that the firm can quickly adapt to changing customer needs and demands, which is a core principle of agility.

Question 9

For supply chains to be successful, any marketing effort of the organization must integrate the ideas of having the right product, at the right price, combined with the right promotion, and available in the right place-these are the 4-Ps (product, price, promotion, place) of the marketing mix and successfully implementing them creates various forms of utility (time, place, possession, form). Supply chain activities primarily occur in relationship to which utility?

Accepted Answer

Supply chain activities primarily focus on ensuring that products are available at the right time and place, thus creating time and place utility.

Question 10

Which of the following statements about omnichannel distribution is FALSE?

Accepted Answer

A majority of customers do not necessarily expect to contact the same person across different channels; they expect a seamless experience but not necessarily the same individual.

Question 11

All of the following could be common obstacles to implementing data analytics in SCM, except for:

Accepted Answer

Overcoming objections of senior management is not typically a common obstacle, as senior management often supports data analytics initiatives due to their potential benefits.

Question 12

Which statement about the implications of product stock-outs for retailers and manufacturers is FALSE?

Accepted Answer

Brand switching does result in direct loss of revenues and profits to manufacturers.

Question 13

For manufacturers, strategies to eliminate product stock-outs or minimize their potential adverse effects, would include all of the following except:

Accepted Answer

The answer of For manufacturers, strategies to eliminate product stock-outs...

Question 14

Which of the following statements about product returns is FALSE?

Accepted Answer

The majority of products returned to an online retailer are not defective; they are often returned due to reasons like wrong size, change of mind, or dissatisfaction with the product.

Question 15

Which of the following reasons for product returns would be considered an "uncontrollable return"?

Accepted Answer

The answer of Which of the following reasons for product...

Question 16

Which of the following reasons for product returns would be considered a "controllable return"?

Accepted Answer

The answer of Which of the following reasons for product...

Question 17

Many disposition options exist for products returned by customers. Which of the following disposition options would likely result in the greatest return on investment (ROI) to the seller?

Accepted Answer

Reselling items as new if they were returned in an unopened package typically yields the highest ROI because it allows the seller to recover the full retail price without additional costs associated with reconditioning or discounting.

Question 18

Utilizing the Strategic Profit Model (DuPont Model), if a company has a net profit margin of 5%, an asset turnover of 2, and a financial leverage of 2, then return on net worth (RONW) is equal to:

Accepted Answer

The DuPont Model calculates Return on Equity (RONW) as Net Profit Margin x Asset Turnover x Financial Leverage. Here, 5% x 2 x 2 = 20%.

Question 19

The Chief Financial Officer (CFO) can have a positive impact on supply chain management is several ways. Which of the following is not one of the ways the CFO can make a positive impact?

Accepted Answer

A "hands off" approach does not positively impact supply chain management as it may lead to financial misalignment and missed opportunities for optimization.

Question 20

Chief Financial Officers (CFO) versus Chief Supply Chain Officers (CSCO) can view the same things differently because they have different perspectives on the issue. When viewing a "lean inventory" strategy from a transportation viewpoint, the CFO would take which of the following perspectives?

Accepted Answer

The CFO would focus on financial metrics, such as reducing working capital tied up in inventory, which aligns with a lean inventory strategy.

Quiz 9: The Role of Manufacturing, Marketing and Finance in Supply Chains