Question 1

The practice whereby a manufacturer has inventories of materials on consignment from its suppliers falls under the scope of:
A)inventory pooling control.
B)virtual distribution.
C)electronic inventory control.
D)vendor-managed inventories.

Accepted Answer

The practice described in the question is known as vendor-managed inventories, which involves the supplier or vendor managing the inventory levels at the buyer or manufacturer's location. This can be done through consignment or other arrangements, and the goal is to improve supply chain efficiency and reduce inventory costs for both parties. Inventory pooling control, virtual distribution, and electronic inventory control are not directly related to this specific practice.

Question 2

Which one of the following statements is TRUE about a cooperative orientation in supplier relationships?
A)It cannot be implemented in Western countries because competitive bidding is more effective in that culture.
B)It cannot be implemented in the Western countries because it always benefits the supplier.
C)It requires all parts and subassemblies to be purchased from the same supplier.
D)It requires few suppliers for each item or service.

Accepted Answer

A cooperative orientation in supplier relationships requires a few suppliers for each item or service so that a long-term relationship can be developed based on cooperation and trust. This enables suppliers to understand the buyer's needs better and provide better quality and service. A cooperative orientation does not require all parts and subassemblies to be purchased from the same supplier, and it can be implemented in Western countries if both parties agree to it, even though competitive bidding may be more common in that culture. The benefits of a cooperative orientation are mutual, and both parties can gain from it.

Question 3

Which of the following is NOT an advantage resulting from a firm outsourcing its customer service process?
A)specific detailed questions can be answered by the customer service representative.
B)the firm gains more control over the customer interface process.
C)customer service labor costs are low.
D)automated systems are replaced by human contact.

Accepted Answer

Outsourcing customer service may lead to lower labor costs (option C), more specific and detailed responses to customer questions (option A), and replacement of automated systems with human contact (option D). However, outsourcing typically results in giving up some degree of control over the customer interface process, which may be a disadvantage for some firms (option B).

Question 4

One of the benefits of a cooperative orientation in supplier relationships is:
A)the buyer sometimes suggests ways to improve the supplier's operations.
B)the supplier implements its own quality standards.
C)the buyer does not have to share much information with the supplier.
D)the supplier has complete freedom in choosing the delivery time.

Accepted Answer

A cooperative orientation in supplier relationships allows for open communication and collaboration between the buyer and supplier. As a result, the buyer may suggest ways to improve the supplier's operations, leading to better overall performance and outcomes. Option B is incorrect because implementing quality standards is the responsibility of the supplier, regardless of the orientation of the relationship. Option C is incorrect because effective communication and information sharing are critical components of a cooperative orientation. Option D is incorrect because the delivery time is typically negotiated and agreed upon by both parties in a cooperative relationship.

Question 5

Suppliers can gain power from a number of sources in the buyer / supplier relationship.When a buyer can threaten to cancel future business unless the supplier adheres to the buyer's demands,this is called a ________ source of power.
A)legal
B)reward
C)referent
D)coercive

Accepted Answer

The scenario described is an example of coercive power, where the buyer has the ability to make threats and apply negative consequences if the supplier does not comply with their demands. This creates a power dynamic where the supplier must weigh the benefits of continuing the business relationship against the potential costs of not complying.

Question 6

The ________ is the phenomenon in supply chains whereby ordering patterns experience increasing variance as you proceed upstream in the chain.

Accepted Answer

The answer of The ________ is the phenomenon in supply...

Question 7

The ________ model focuses on the supply chain processes plan,source,make,deliver,and return.

Accepted Answer

The answer of The ________ model focuses on the supply...

Question 8

Examples of radio frequency identification (RFID)could include all of the following EXCEPT:
A)tracking the status of engineering changes during development of a new product line.
B)tracking cases and pallets of products into and out of warehouse inventories.
C)air travel use for baggage tracking.
D)tracking the flow of parts through a manufacturing process.

Accepted Answer

The other three choices all involve tracking products or items using RFID technology, while tracking the status of engineering changes would not necessarily require RFID technology.

Question 9

Which of the following is NOT a lever in an integrated supply chain?
A)collaborative activities by supply chain partners
B)reduced replenishment lead times
C)reduced order lot sizes
D)elimination of product shortages and backorders

Accepted Answer

The answer of Which of the following is NOT a...

Question 10

The bullwhip effect results in greater demand variability at the ________ end of the supply chain and lesser demand variability at the ________ end of the supply chain.

Accepted Answer

The answer of The bullwhip effect results in greater demand...

Question 11

Suppliers can gain power from a number of sources in the buyer / supplier relationship.When a supplier values identification with a buyer,this is called a(n)________ source of power.
A)expert
B)reward
C)referent
D)legal

Accepted Answer

When a supplier values identification with a buyer, it is a referent source of power. Referent power comes from admiration or respect for another person and is based on the belief that the person possesses desirable characteristics or resources. In this case, the supplier values being associated with the buyer and therefore has power in the relationship. Expert power comes from having specialized knowledge or skills, reward power comes from providing incentives or benefits, and legal power comes from laws or contracts.

Question 12

A systematic effort to reduce the cost or improve the performance of services or products is known as:
A)presourcing.
B)cooperative orientation.
C)supplier certification.
D)value analysis.

Accepted Answer

Value analysis is a systematic effort to reduce costs or improve performance by analyzing the value of each component of a service or product. This process often involves evaluating the function of each component and considering alternatives that may be more cost-effective or efficient. Presourcing refers to identifying potential suppliers before a need arises, cooperative orientation refers to a collaborative approach to supplier relationships, and supplier certification involves certifying suppliers based on certain criteria such as quality or sustainability. While these strategies may be helpful in improving supply chain management, they do not specifically address cost or performance improvement efforts.

Question 13

Which one of the following statements correctly represents a benefit of centralized buying?
A)Local managers have more control over their business.
B)Purchases and production schedules are meshed more easily.
C)Customization to local preferences is simplified.
D)Increased buying power can result in significant savings in purchasing costs.

Accepted Answer

Centralized buying allows for greater buying power, which often results in more advantageous pricing from suppliers. This can lead to significant cost savings for the organization.

Question 14

Which of the following statements about cross-docking is NOT correct?
A)Cross-docking is packing products on incoming shipments so they can be easily sorted for outgoing shipments based on their final destination.
B)Cross-docking reduces inventory and storage space requirements,but handling costs and lead times tend to increase.
C)Items are moved from incoming vehicles to outgoing vehicles without being stored in warehouse inventory.
D)Inbound and outbound shipments must be tightly coordinated for cross-docking to work.

Accepted Answer

Cross-docking reduces inventory and storage space requirements, which reduces storage-related costs. Handling costs may increase, but lead times tend to decrease rather than increase.

Question 15

Which of the following is NOT an advantage the Internet provides for a firm's order placement process?
A)greater variety and better quality of products available
B)cost reduction
C)increase in revenue flow
D)pricing flexibility
E)global access

Accepted Answer

The Internet can provide greater variety and better quality of products available, which is an advantage. The other options listed (B, C, D, and E) are all advantages that the Internet provides for a firm's order placement process.

Question 16

Suppliers can gain power from a number of sources in the buyer / supplier relationship.When a buyer has access to knowledge,information and skills desired by the supplier,this is called a(n)________ source of power.
A)expert
B)reward
C)referent
D)coercive

Accepted Answer

When a buyer has specialized knowledge or expertise that is valuable to the supplier, the buyer gains an expert source of power. This can give them an advantage in negotiations because the supplier may be more willing to make concessions or offer better terms to maintain the relationship and access to that knowledge or expertise.

Question 17

What services are typically offered by a 3PL?
A)transportation
B)product design
C)catalog hub
D)auction

Accepted Answer

A 3PL (third-party logistics) typically offers transportation services, such as shipping, freight forwarding, and delivery. Product design, catalog hub, and auction services are not typically offered by 3PLs.

Question 18

________ and ________ supply chain designs are well-suited to products with low demand and high variability.

Accepted Answer

The answer of ________ and ________ supply chain designs are...

Question 19

What is the meaning of the acronym 3PL?
A)three pofit/loss periods
B)three purchasing locations
C)three partner leverage
D)third party logistics provider

Accepted Answer

3PL stands for third party logistics provider, which refers to a company or service provider that offers logistics and supply chain management services to businesses.

Question 20

Approaches to e-purchasing include all of the following EXCEPT:
A)catalog hubs.
B)radio frequency identification (RFID).
C)exchanges.
D)electronic data interchange (EDI).

Accepted Answer

Radio frequency identification (RFID) is not considered an approach to e-purchasing. It is a technology used for tracking and identifying objects using radio waves. Catalog hubs, exchanges, and electronic data interchange (EDI) are all approaches to e-purchasing.

Quiz 12: Supply Chain Integration

The practice whereby a manufacturer has inventories of materials on consignment from its suppliers falls under the scope of:

Which one of the following statements is TRUE about a cooperative orientation in supplier relationships?

Which of the following is NOT an advantage resulting from a firm outsourcing its customer service process?

One of the benefits of a cooperative orientation in supplier relationships is:

Suppliers can gain power from a number of sources in the buyer / supplier relationship.When a buyer can threaten to cancel future business unless the supplier adheres to the buyer's demands,this is called a ________ source of power.

The ________ is the phenomenon in supply chains whereby ordering patterns experience increasing variance as you proceed upstream in the chain.

The ________ model focuses on the supply chain processes plan,source,make,deliver,and return.

Examples of radio frequency identification (RFID) could include all of the following EXCEPT:

Which of the following is NOT a lever in an integrated supply chain?

The bullwhip effect results in greater demand variability at the end of the supply chain and lesser demand variability at the end of the supply chain.

Suppliers can gain power from a number of sources in the buyer / supplier relationship.When a supplier values identification with a buyer,this is called a(n) ________ source of power.

A systematic effort to reduce the cost or improve the performance of services or products is known as:

Which one of the following statements correctly represents a benefit of centralized buying?

Which of the following statements about cross-docking is NOT correct?

Which of the following is NOT an advantage the Internet provides for a firm's order placement process?

Suppliers can gain power from a number of sources in the buyer / supplier relationship.When a buyer has access to knowledge,information and skills desired by the supplier,this is called a(n) ________ source of power.

What services are typically offered by a 3PL?

and supply chain designs are well-suited to products with low demand and high variability.

What is the meaning of the acronym 3PL?

Approaches to e-purchasing include all of the following EXCEPT: