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1. Each stage in a supply chain is connected through the flow of products, information, and funds. These flows often occur in both directions and are usually managed by
B.) One of the stages
2. A supply chain features a constant flow of
A) information, product and funds.
3. Which set of supply chain flows is correctly described?
B) Information and product both flow upstream and downstream in a supply chain.
4. Which statement about supply chains is
best?
C) Flows in a supply chain may be managed by an intermediary.
5. Which sequence of stages is typical for product flow in a supply chain?
A) Supplier → Manufacturer → Distributor
6. Supply chain surplus involves what two parts?
B) Customer value and supply chain cost
7. For any supply chain, the source of revenue is generated by
B) the customer.
8. Customer value is
A) the sum of the supply chain surplus and supply chain cost.
9. The objective
of every supply chain is to
B) maximize the overall value generated.
10. Retailing in the United States is largely
B) consolidated.
11. For any supply chain,
D) there is only one source of revenue, the customer.
12. Webvan designed a supply chain with large warehouses in several major cities in the United States, from which groceries were delivered to customer homes. They failed partly because of
C) higher labor costs for picking orders.
13. A key issue facing
Toyota is
C) design of its global production and distribution network.
14. Walmart's supply chain features clusters of stores around distribution centers, which facilitates
C) frequent but inexpensive replenishment at the stores.
15. Which of these statements about Dell's supply chain is best?
C) Dell's initial success was largely driven by their Assembly→Customer supply chain linkage
16. The decision phases in a supply chain include
D) supply chain operation.
17. A company would decide whether to outsource or perform a supply chain function in-house during the
B) Design Phase
18. The supply chain strategy category would include a decision about
D) how large the warehouse in Kokomo should be.
19. The profitability of a supply chain is impacted primarily by the
A) design, planning and operation categories of decisions.
20. The time horizon of the operation phase is typically
B) weekly or daily.
21. The cycle view
of a supply chain holds that
B) the processes in a supply chain are divided into a series of activities performed at the interface between successive stages.
22. The push/pull view of a supply chain holds that
D) the processes in a supply chain are divided into 2 categories depending on whether they are initiated in response to or in anticipation of customer orders.
23. The customer order cycle occurs at the
A) customer/retailer interface.
24. Customer arrival refers
to
A) the point in time when the customer has access to choices and makes a decision regarding a purchase.
25. The objective of the customer arrival process is to
C) maximize the conversion of customer arrivals to customer orders.
26. Customer order entry is
B) the customer informing the retailer of what they want to purchase and the retailer allocating product to the customer.
27. The objective of customer order entry is to
D) ensure that orders are quickly and
accurately entered and communicated to other affected supply chain processes.
28. Customer order fulfillment refers to
C) the process where product is prepared and sent to the customer.
29. The objective of customer order fulfillment is to
A) get the correct orders to customers by the promised due date at the lowest possible cost.
30. Customer order receiving is
D) the process where the customer receives the product and takes ownership.
31. The replenishment
cycle occurs at the
B) retailer/distributor interface.
32. The processes included in the replenishment cycle include
C) retail trigger.
33. The manufacturing cycle occurs at the
C) distributor/manufacturer interface.
34. The processes involved in the manufacturing cycle include
B) production scheduling.
35. The production scheduling process in the manufacturing cycle is similar to the
C) order entry process in the replenishment cycle.
36. The
manufacturing and shipping process in the manufacturing cycle is equivalent to the
B) order fulfillment process in the replenishment cycle.
37. The procurement cycle occurs at the
D) manufacturer/supplier interface.
38. The relationship between the manufacturer and supplier during the procurement cycle is very similar to the relationship between
C) distributor and manufacturer.
39. The cycle view of the supply chain is useful when considering operational decisions,
because
B) it specifies the roles and responsibilities of each member of the supply chain.
40. The push/pull view of the supply chain is useful when considering strategic decisions relating to supply chain design, because
A) it categorizes processes based on whether they are initiated in response to or in anticipation of customer orders.
41. Which of the following statements about pull processes is accurate?
D) They may also be referred to as reactive processes.
42.
Which of the following statements about push processes is accurate?
A) They may also be referred to as speculative processes.
43. Supply chain macro processes include which of the following?
B) Customer Relationship Management (CRM)
44. Supply chain macro processes include which of the following?
C) Supplier Relationship Management (SRM)
45. Activities involved in the Customer Relationship Management (CRM) macro process include
C) Marketing
46. Activities
involved in the Internal Supply Chain Management (ISCM) macro process include
B) Order fulfillment
47. Activities involved in the Supplier Relationship Management (SRM) macro process include
C) supplier evaluation and selection.
48. A key supply chain difference between Gateway and Apple is that
B) Apple has always carried product in their stores while at one time Gateway stores carried no inventory
49. Zara's supply chain strategy
A) results in supply more
closely matching customer demand.
50. Toyota's global complementation strategy
D) mandates that plants can produce vehicles for export to markets that remain strong when the local market weakens.
CHAPTER 2
1. A company's competitive strategy
A) defines the set of customer needs that it seeks to satisfy through its products and services.
2. The value that potential customers place on product cost and delivery time determines a company's
B) competitive strategy
3. The value chain in a company begins with
C) new product development.
4. Seven-Eleven in Japan's operations and distribution strategy focuses on
D) being responsive and having an excellent information infrastructure.
5. Which element in the value chain is responsible for transforming inputs into outputs?
A) Operations
6. Which of these services facilitates the function of the value chain but is not considered a core element of the supply chain?
B)
Information Technology
7. A company's product development strategy
B) specifies the portfolio of new products that it will try to develop.
8. A company's marketing and sales strategy
C) specifies how the market will be segmented and how the product will be positioned, priced, and promoted.
9. A company's supply chain strategy
D) determines the nature of procurement and transportation of materials as well as manufacture and distribution of the product.
10. The
value chain consists of direct and indirect activities. Which of the following is an indirect activity for an enterprise?
C) Human Resources
11. A ________ strategy specifies the portfolio of new products that a company will try to
A) Product Development
12. A ________ strategy specifies how the market will be segmented and how the product will be positioned, priced, and promoted.
B) Marketing and Sales
13. Which of the following determines the nature of procurement
of raw materials, transportation of materials to and from the company, manufacture of the product or operation to provide the service, and distribution of the product to the customer along with follow-up service?
D) Supply chain strategy
14. Which of the following defines the set of customer needs that a company seeks to satisfy through its products and services?
A) Competitive strategy
15. Which of the following specifies the portfolio of new products that a company will try
to develop?
B) Product development strategy
16. A supply chain strategy involves decisions regarding all of the following except
C) new product development.
17. The uncertainty of customer demand for a product is the
B) demand uncertainty.
18. The uncertainty that exists due to the portion of demand that the supply chain is required to meet is the
C) implied demand uncertainty.
19. Which of the following customer needs will cause implied uncertainty of
demand to increase?
B) Lead time decreases
20. The first step in achieving strategic fit between competitive and supply chain strategies is to
B) understand customers and supply chain uncertainty.
21. The second step in achieving strategic fit between competitive and supply chain strategies is to
A) understand the supply chain and map it on the responsiveness spectrum.
22. The final step in achieving strategic fit between competitive and supply chain strategies is
to
C) match supply chain responsiveness with the implied uncertainty of demand.
23. Supply chain responsiveness includes the ability to do which of the following?
A) Handle supply uncertainty
24. Supply chain responsiveness includes the ability to do which of the following?
B) Meet a very high service level
25. Supply chain responsiveness includes the ability to do which of the following?
C) Meet short lead times
26. The cost of making and delivering a
product to the customer is referred to as
B) supply chain efficiency.
27. The curve that shows the lowest possible cost for a given level of responsiveness is referred to as the
C) cost-responsiveness efficient frontier.
28. A firm that is not on the cost-responsiveness efficient frontier can improve
A) both responsiveness and cost performance.
29. A graph with two axes with implied uncertainty along the horizontal axis and responsiveness along the vertical axis is
referred to as the
C) uncertainty/responsiveness map.
30. The relationship where increasing implied uncertainty from customers and supply sources is best served by increasing responsiveness from the supply chain is known as the
D) zone of strategic fit.
31. The drive for strategic fit should come from
C) the highest levels of the organization, such as the CEO.
32. The preferable supply chain strategy for a firm that sells multiple products and serves customer
segments with very different needs is to
C) tailor the supply chain to best meet the needs of each product's demand.
33. Which of the following would be a demand and supply characteristic toward the beginning stages of a product's life cycle?
C) Product availability is crucial to capturing the market.
34. Between 1993 and 2006, Dell's competitive strategy was to provide a large variety of customizable products at a reasonable price. Given the focus on customization, Dell's
supply chain was designed to
A) be responsive.
35. For a company to achieve strategic fit, it must accomplish the following keys:
C) The overall supply chain must operate at the lowest cost possible to achieve success.
36. Efficient supply chains
D) maximize performance at a minimum cost.
37. The functions and stages that devise an integrated strategy with a shared objective are referred to as
C) scope of strategic fit.
38. With the ________ view, firms
attempt to align all operations within a function. In this view, all supply chain functions including sourcing, manufacturing, warehousing, and transportation must align their strategy to minimize total functional cost.
B) Intra-operation scope
39. The key weakness of the ________ view is that different functions within a firm may have conflicting objectives.
A) Intra-functional scope
40. Which of these has the broader range?
B) Inter-company scope
41. Scope of
strategic fit refers to both the
C) function within the firm and stages across the supply chain.
42. The authors cite IKEA as achieving an intercompany scope of strategic fit which serves to
D) increase the supply chain surplus.
43. A company's partners in the supply chain determine
A) the company's success.
44. Company A and Company B of the same supply chain rely on market responsiveness to attract customers. Each company has access to the other company's designs,
production schedules, and goals, and if Company A needs product overnight, Company B gladly ships it, knowing that in the long run it works to the benefit of both. Such an arrangement is an example of
D) inter-company scope.
45. Increased product variety and shrinking product life cycles usually result in
A) the deliberate phase-out of older products.
46. Risks and opportunities have increased for supply chains due to
B) increasing globalization.
47. Over the past
several decades
C) the number of owners per supply chain has increased.
48. One motivation for companies to shed noncore functions to their supply chains has been to
D) take advantage of supplier and customer competencies that they did not possess.
49. Which of these examples ripped from the headlines of business periodicals is most accurate?
A) Netflix has two content delivery systems that are inexpensive to operate.
50. Concerns related to the environment and
sustainability
B) are sometimes dictated by regulations and sometimes by perception.
CHAPTER 3
1. Katz reports total revenue of $245,600, cost of goods sold of $18,950 and net income of $121,000. Their total assets are $585,000 and total liabilities are $250,000. What is their return on equity (ROE)?
A) 36.12%
2. Katz reports total revenue of $375,650, cost of goods sold of $267,400 and net income of $48,325. Their total assets are $784,325 and total liabilities are
$387,775. What is their return on equity (ROE)?
B) 12.19%
3. Which of the following would result in lower return on assets for Katz if all other entries in their selected financial data were held constant?
C) A reduction in total assets
4. Which of the following would result in an improvement in the C2C cycle for Katz if all other entries in their selected financial data were held constant?
B) An increase weeks payable
5. Geoff strolled into his local big box
retailer in search of sunflower seeds for the flock of cardinals that graced his property during the cold winter. Much to his (and the cardinals') dismay, the shelf where the 50 pound bags of sunflower seeds were kept was bare. He pirouetted and left the store in disgust, empty-handed and fearing the wrath of an angry flock of cardinals when he returned home. This sad scenario illustrates
D) a lost sale.
6. Why would anyone in their right mind buy a brand new car in the spring when
they know that new car models will appear in late summer and early fall and the dealers will use
A) markdowns to move that old inventory?
7. The places in the supply chain network where product is stored, assembled, or fabricated are known as
A) facilities.
8. All raw materials, work in process, and finished goods within a supply chain are known as
B) inventory.
9. Moving inventory from point to point in the supply is known as
C) transportation.
10. The
data and analysis concerning facilities, inventory, transportation, and customers throughout the supply chain is known as
D) information.
11. The two major types of facilities are
C) production sites and storage sites.
12. Which component of the supply chain decision-making framework would be established first?
D) Competitive strategy
13. Which component of the supply chain decision-making framework would be used to reach the performance level dictated by the supply
chain strategy?
C) Supply chain structure
14. Which of the following is a characteristic of a facility with excess capacity?
A) Will likely be more efficient per unit of product it produces than one with a lot of unused capacity
15. Which of the following would be a characteristic of a facility with little excess capacity?
D) Will likely be more efficient per unit of product it produces
16. The warehousing methodology that uses a traditional warehouse to store all
of one type of product together is
B) stock keeping unit (SKU) storage.
17. The warehousing methodology in which all the different types of products needed to perform a particular job or satisfy a particular type of customer are stored together is
C) job lot storage.
18. The following warehousing methodology is one in which goods are not actually warehoused in a facility. Instead, trucks from suppliers, each carrying a different type of product, deliver goods to a facility.
There the inventory is broken into smaller lots and quickly loaded onto store-bound trucks that carry a variety of products, some from each of the supplier trucks.
D) Cross-docking
19. The average amount of inventory used to satisfy demand between receipt of supplier shipments is referred to as
A) cycle inventory.
20. The inventory that is built up to counter predictable variability in demand is called
C) seasonal inventory.
21. The inventory held in case demand
exceeds expectation in order to counter uncertainty is called
B) safety inventory.
22. The set of business processes required to purchase goods and services is known as
D) sourcing.
23. Cycle inventory is used because
B) demand is uncertain and may exceed expectations.
24. Seasonal inventory should be used when
A) a company can rapidly change the rate of its production system at a very low cost.
25. Which of the following are key components of
transportation decisions when designing and operating a supply chain?
B) Mode of transportation
26. Although faster transportation is more expensive, a firm receives which benefit as a result of the faster transportation?
C) Lower inventories
27. A beekeeper sends out crates of honey to a number of customers. The shipping cost is a function of the gasoline prices that day and the size of the truck used for delivery. For any shipment exceeding 3000 pounds, the truck rental is $600 and for a shipment weight less than 3000, the truck rental is $450.
Units
Weight
Weight Fee
6
156
$703.56
87
2175
$9,461.25
23
575
$2,265.50
149
3874
$17,084.34
203
5075
$1,9944.75
212
5724
$2,2552.56
90
2340
$10,272.60
28
700
$3,066.00
What is the average outbound transportation cost?
A) $4.34 per pound
28. Blue Nile is an online retailer of diamonds that has used responsive transportation to
ship diamonds to customers in the United States, Canada, and several countries in Europe and Asia. Which is the mode of transportation used with this strategy?
D) Air
29. Which of the following are key components of information that must be analyzed to increase efficiency and improve effectiveness in a supply chain?
D) Forecasting and aggregate planning
30. When all the different stages of a supply chain work toward the objective of maximizing total supply chain
profitability, rather than each stage devoting itself to its own profitability without considering total supply chain profit, it is known as
A) supply chain coordination.
31. The art and science of making projections about what future demand and conditions will be is
B) forecasting.
32. Transforming forecasts into plans of activity to satisfy the projected demand is known as
C) aggregate planning.
33. The process by which a firm decides how much to charge customers
for its goods and services is
D) pricing.
34. The use of differential pricing over time or customer segments to maximize profits from a limited set of supply chain assets is
D) revenue management.
35. Which of the following is a technology that shares and analyzes information in the supply chain?
A) Internet
36. ________ identifies the difference between the planned production/inventories and the actual values.
C) Variance from plan
37. In the textbook,
it mentions that Walmart has mandated the use of a specific technology by its top 100 suppliers at the level of product cases. What is the technology?
A) RFID
38. ________ typically measures the cost of bringing product into a facility as a percentage of sales or cost of goods sold (COGS).
B) Average inbound transportation cost
39. ________ measures the average time between when an order is placed and the product arrives.
B) Supply lead time
40. Zara sources basic
products such as white t-shirts from low cost countries because demand is predictable. For trendy products for which demand is unpredictable, Zara sources from company-owned higher cost factories in Europe. For the predictable demand, Zara strives for ________ and for the unpredictable demand, Zara hopes to achieve ________.
C) efficiency, flexibility
41. The most significant sourcing decision for a firm is
D) whether to perform a task in-house or outsource it to a third party.
42. Lisa rented her goats out to anyone interested in clearing underbrush the natural way on their acreage. She received a call from her client Mary on June 21 and delivered her herd of goats to the site on June 24. The goats were done on June 30 and Lisa presented Mary with an invoice the same day. Mary wrote Lisa a check on July 18 and Lisa cashed it on July 21. What was Lisa's days payable outstanding for Mary's job?
A) 18 days
43. Over the past two months, Lisa has received several orders for goat grazing services. The order date, promise date, and delivery dates are shown in the table below.
Order Date
Promise Date
Delivery Date
June 1
June 2
June 3
June 1
June 4
June 4
June 6
June 7
June 7
June 13
June 15
June 15
June 15
June 16
June 18
June 15
June 18
June 20
June 18
June 22
June 22
June 19
June 25
June 25
June 20
June 27
June 27
June 22
June 29
June 29
June
24
June 28
June 30
June 26
July 4
July 4
June 28
July 8
July 7
June 30
July 8
July 9
What is Lisa's percentage of on-time deliveries?
B) 64% (9/14 days)
44. The ________ strategy results in a peak during the discount week, often followed by a steep drop in demand during the following weeks.
B) High-low pricing
45. ________ measures the incremental costs that are independent of the size of the order.
C) Incremental fixed cost per
order
46. Economies of scale are illustrated by
D) a supplier waiting until enough demand has built up to send a full truckload shipment to their customer.
47. ) On a recent road trip to the Big Easy, the absentee landlord recorded his gasoline purchases in a logbook that he intended to support his rental expenses for the year. The entries are in the table below:
Gallons
Total
Cost
15
$44.40
16
$36.32
13.5
$34.70
18
$45.90
8
$23.36
12
$30.72
What is the average sale price of the gasoline?
A) $2.61 (215.4/ 82.5)
48. On a recent road trip to the Big Easy, the absentee landlord recorded his gasoline purchases in a logbook that he intended to support his rental expenses for the year. The entries are in the table below:
Gallons
Total
Cost
15
$44.40
16
$36.32
13.5
$34.70
18
$45.90
8
$23.36
12
$30.72
What is the average order size of the gasoline?
B) 13.75 (82.5 / 6)
49. On a recent road trip to the Big Easy, the absentee landlord recorded his gasoline purchases in a logbook that he intended to support his rental expenses for the year. The entries are in the table below:
Gallons
Total
Cost
15
$44.40
16
$36.32
13.5
$34.70
18
$45.90
8
$23.36
12
$30.72
What is the range of sale price of the gasoline?
C) 0.69
50. Amazon uses different prices for the products that are purchased from the company — often for the speed of the shipping. What is the name of this pricing scheme?
D) Menu pricing