Question 1

Logistics is a term indicating transportation choices for goods produced internationally but consumed domestically.

Accepted Answer

A) True 
 B)False  False

Question 2

A financially-driven reason for outsourcing is that it can turn fixed costs into variable costs.

Accepted Answer

A) True 
 B)False  True

Question 3

The effect of the lack of synchronization among supply chain members is referred to as which of the following?

Accepted Answer

A)  Forward buying 
B)  Continuous replenishment 
C)  Bullwhip effect 
D)  Metcalf's Law 
E)  Being out of step 
A)  Forward buying 
B)  Continuous replenishment 
C)  Bullwhip effect 
D)  Metcalf's Law 
E)  Being out of step C

Question 4

A stable supply process is one where the manufacturing process and the underlying technology are mature and the supply base is well established.

Accepted Answer

A) True 
 B)False

Question 5

If the average aggregate inventory value is $1,200,000 and the cost of goods sold is $600,000, which of the following is inventory turnover?

Accepted Answer

A)  60 
B)  10.4 
C)  2 
D)  0.5 
E)  None of these 
A)  60 
B)  10.4 
C)  2 
D)  0.5 
E)  None of these

Question 6

Inventory turn values that are considered good differ by industry and the type of products being handled.

Accepted Answer

A) True 
 B)False

Question 7

A financially-driven reason for outsourcing is that it can help gain access to new markets, especially in developing countries.

Accepted Answer

A) True 
 B)False

Question 8

The total cost of ownership (TCO) is an estimate of the cost of an item that includes all the costs related to the procurement and use of an item, but does not include any of the costs related to disposing of the item after it is no longer useful.

Accepted Answer

A) True 
 B)False

Question 9

The six-step process for green sourcing includes which of the following?

Accepted Answer

A)  Provide a press release to local (and perhaps national) media 
B)  Include members of environmental groups in the decision 
C)  Notify the state and federal environmental agencies of your plans 
D)  Perform an environmental impact study 
E)  Develop the sourcing strategy 
A)  Provide a press release to local (and perhaps national) media 
B)  Include members of environmental groups in the decision 
C)  Notify the state and federal environmental agencies of your plans 
D)  Perform an environmental impact study 
E)  Develop the sourcing strategy

Question 10

The optimal strategy for functional products is to use an efficient supply chain.

Accepted Answer

A) True 
 B)False

Question 11

A stable supply process is one where product volumes are high, demand is predictable and there is a long product life.

Accepted Answer

A) True 
 B)False

Question 12

Outsourcing is the act of moving some of a firm's internal activities and decision responsibility to outside providers.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is not an organizationally-driven reason for outsourcing?

Accepted Answer

A)  Improve effectiveness by focusing on what the firm does best 
B)  Improve flexibility to meet changing demand for products and services 
C)  Increase product and service value by improving response to customer needs 
D)  Improve credibility and image by associating with superior providers 
E)  All of these are organizationally-driven reasons for outsourcing 
A)  Improve effectiveness by focusing on what the firm does best 
B)  Improve flexibility to meet changing demand for products and services 
C)  Increase product and service value by improving response to customer needs 
D)  Improve credibility and image by associating with superior providers 
E)  All of these are organizationally-driven reasons for outsourcing

Question 14

Logistics is a term that refers to the management functions that support the complete cycle of material flow, from the purchase and internal control of production materials; to the planning and control of work-in-process; to the purchasing, shipping, and distribution of the finished product.

Accepted Answer

A) True 
 B)False

Question 15

Outsourcing allows a firm to achieve an improved focus on its core competencies.

Accepted Answer

A) True 
 B)False

Question 16

If the average aggregate inventory value is $100,000 and the cost of goods sold is $450,000, which of the following is inventory turnover?

Accepted Answer

A)  19.23 
B)  4.5 
C)  0.8654 
D)  0.2222 
E)  None of these 
A)  19.23 
B)  4.5 
C)  0.8654 
D)  0.2222 
E)  None of these

Question 17

When using the supply chain uncertainty framework to classify supply chains, a supply chain for innovative products with an evolving supply process is called which of the following?

Accepted Answer

A)  Efficient 
B)  Forward looking 
C)  Agile 
D)  Risk hedging 
E)  Responsive 
A)  Efficient 
B)  Forward looking 
C)  Agile 
D)  Risk hedging 
E)  Responsive

Question 18

Two common measures to evaluate supply chain efficiency are the inventory turnover and weeks-of-supply ratios.

Accepted Answer

A) True 
 B)False

Question 19

Inventory turnover and weeks of supply are mathematically the inverse of one another.

Accepted Answer

A) True 
 B)False

Question 20

Retailer behavior when stocking up during promotion periods (where the prices of goods are reduced) is called backward buying.

Accepted Answer

A) True 
 B)False

Logistics is a term indicating transportation choices for goods produced internationally but consumed domestically.

A financially-driven reason for outsourcing is that it can turn fixed costs into variable costs.

The effect of the lack of synchronization among supply chain members is referred to as which of the following?

A stable supply process is one where the manufacturing process and the underlying technology are mature and the supply base is well established.

If the average aggregate inventory value is $1,200,000 and the cost of goods sold is $600,000, which of the following is inventory turnover?

Inventory turn values that are considered good differ by industry and the type of products being handled.

A financially-driven reason for outsourcing is that it can help gain access to new markets, especially in developing countries.

The total cost of ownership (TCO) is an estimate of the cost of an item that includes all the costs related to the procurement and use of an item, but does not include any of the costs related to disposing of the item after it is no longer useful.

The six-step process for green sourcing includes which of the following?

The optimal strategy for functional products is to use an efficient supply chain.

A stable supply process is one where product volumes are high, demand is predictable and there is a long product life.

Outsourcing is the act of moving some of a firm's internal activities and decision responsibility to outside providers.

Which of the following is not an organizationally-driven reason for outsourcing?

Logistics is a term that refers to the management functions that support the complete cycle of material flow, from the purchase and internal control of production materials; to the planning and control of work-in-process; to the purchasing, shipping, and distribution of the finished product.

Outsourcing allows a firm to achieve an improved focus on its core competencies.

If the average aggregate inventory value is $100,000 and the cost of goods sold is $450,000, which of the following is inventory turnover?

When using the supply chain uncertainty framework to classify supply chains, a supply chain for innovative products with an evolving supply process is called which of the following?

Two common measures to evaluate supply chain efficiency are the inventory turnover and weeks-of-supply ratios.

Inventory turnover and weeks of supply are mathematically the inverse of one another.

Retailer behavior when stocking up during promotion periods (where the prices of goods are reduced) is called backward buying.

Operations and Supply Chain Management

Strategy and Sustainability

Forecasting

Strategic Capacity Management

Projects

Manufacturing Processes

Service Processes

Sales and Operations Planning

Material Requirements Planning

Quality Management and Six Sigma

Inventory Management

Lean Supply Chains

Location, Logistics, and Distribution

Filters

Exam 13: Global Sourcing and Procurement

Logistics is a term indicating transportation choices for goods produced internationally but consumed domestically.

A financially-driven reason for outsourcing is that it can turn fixed costs into variable costs.

The effect of the lack of synchronization among supply chain members is referred to as which of the following?

A stable supply process is one where the manufacturing process and the underlying technology are mature and the supply base is well established.

If the average aggregate inventory value is $1,200,000 and the cost of goods sold is $600,000, which of the following is inventory turnover?

Inventory turn values that are considered good differ by industry and the type of products being handled.

A financially-driven reason for outsourcing is that it can help gain access to new markets, especially in developing countries.

The total cost of ownership (TCO) is an estimate of the cost of an item that includes all the costs related to the procurement and use of an item, but does not include any of the costs related to disposing of the item after it is no longer useful.

The six-step process for green sourcing includes which of the following?

The optimal strategy for functional products is to use an efficient supply chain.

A stable supply process is one where product volumes are high, demand is predictable and there is a long product life.

Outsourcing is the act of moving some of a firm's internal activities and decision responsibility to outside providers.

Which of the following is not an organizationally-driven reason for outsourcing?

Logistics is a term that refers to the management functions that support the complete cycle of material flow, from the purchase and internal control of production materials; to the planning and control of work-in-process; to the purchasing, shipping, and distribution of the finished product.

Outsourcing allows a firm to achieve an improved focus on its core competencies.

If the average aggregate inventory value is $100,000 and the cost of goods sold is $450,000, which of the following is inventory turnover?

When using the supply chain uncertainty framework to classify supply chains, a supply chain for innovative products with an evolving supply process is called which of the following?

Two common measures to evaluate supply chain efficiency are the inventory turnover and weeks-of-supply ratios.

Inventory turnover and weeks of supply are mathematically the inverse of one another.

Retailer behavior when stocking up during promotion periods (where the prices of goods are reduced) is called backward buying.

Operations and Supply Chain Management

Strategy and Sustainability

Forecasting

Strategic Capacity Management

Projects

Manufacturing Processes

Service Processes

Sales and Operations Planning

Material Requirements Planning

Quality Management and Six Sigma

Inventory Management

Lean Supply Chains

Location, Logistics, and Distribution

Filters