Question 1

Firms producing functional products are forced to introduce a steady stream of innovations in order to survive.

Accepted Answer

A) True 
 B)False

Question 2

These are supply chains that utilize strategies aimed at pooling and sharing resources in a supply chain.

Accepted Answer

A)  Efficient supply chains 
B)  Risk-hedging supply chains 
C)  Responsive supply chains 
D)  Agile supply chains 
E)  Vendor-managed supply chains 
A)  Efficient supply chains 
B)  Risk-hedging supply chains 
C)  Responsive supply chains 
D)  Agile supply chains 
E)  Vendor-managed supply chains

Question 3

In Hau Lee's uncertainty framework to classify supply chains, a supply chain for functional 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 4

Which of the following is not an improvement-driven reason to outsource?

Accepted Answer

A)  Improve risk management. 
B)  Increase commitment in a noncore area. 
C)  Shorten cycle time. 
D)  Improve quality and productivity. 
E)  Obtain expertise, skills, and technologies that are otherwise not available. 
A)  Improve risk management. 
B)  Increase commitment in a noncore area. 
C)  Shorten cycle time. 
D)  Improve quality and productivity. 
E)  Obtain expertise, skills, and technologies that are otherwise not available.

Question 5

A firm that controls most of the activities in its supply chain is said to be vertically integrated.

Accepted Answer

A) True 
 B)False

Question 6

The phenomenon that magnifies the variability in order quantities for goods as orders move through the supply chain from the customer to the producer is called the bullwhip effect.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)  1,040 
B)  606 
C)  104 
D)  60.6 
E)  2.0 
A)  1,040 
B)  606 
C)  104 
D)  60.6 
E)  2.0

Question 8

In Hau Lee's uncertainty framework to classify supply chains, a supply chain for functional products with a stable 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 9

Other things remaining the same, if the average aggregate inventory value goes down, then

Accepted Answer

A)  inventory turnover ratio and weeks of supply will both go down. 
B)  inventory turnover ratio will go down, but the weeks of supply will stay the same. 
C)  inventory turnover ratio and weeks of supply will both go up. 
D)  inventory turnover ratio will go up, but weeks of supply will go down. 
E)  inventory turnover ratiowill stay the same, but weeks of supply will go down. 
A)  inventory turnover ratio and weeks of supply will both go down. 
B)  inventory turnover ratio will go down, but the weeks of supply will stay the same. 
C)  inventory turnover ratio and weeks of supply will both go up. 
D)  inventory turnover ratio will go up, but weeks of supply will go down. 
E)  inventory turnover ratiowill stay the same, but weeks of supply will go down.

Question 10

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 11

Which of the following of Fisher's product categories includes fashionable clothing, personal computers, and other products that typically have a very brief life cycle?

Accepted Answer

A)  Functional products 
B)  Dysfunctional products 
C)  Innovative products 
D)  Bullwhip products 
E)  Value density products 
A)  Functional products 
B)  Dysfunctional products 
C)  Innovative products 
D)  Bullwhip products 
E)  Value density products

Question 12

Functional products include staples that people buy in a wide range of retail outlets, such as grocery stores and gas stations.

Accepted Answer

A) True 
 B)False

Question 13

First Among Best Solar Inc. announces that they will take back, free of cost, all of their solar panels that are no longer useful. Until now, the cost of disposal was significant. This action reduces which of the following for the customers?

Accepted Answer

A)  Acquisition cost 
B)  Ownership costs 
C)  Post-ownership costs 
D)  None of these choices are correct 
A)  Acquisition cost 
B)  Ownership costs 
C)  Post-ownership costs 
D)  None of these choices are correct

Question 14

The best strategy for innovative products is to use either a responsive or an agile supply chain.

Accepted Answer

A) True 
 B)False

Question 15

In conducting a total cost of ownership analysis, it is probably best to use a team representing the key functional areas.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is an organizationally driven reason for outsourcing?

Accepted Answer

A)  Improve effectiveness by focusing on what the firm does best. 
B)  Turn fixed costs into variable costs. 
C)  Reduce costs through lowered cost structure and increased flexibility. 
D)  Improve risk management. 
E)  Improve credibility and image by associating with superior providers. 
A)  Improve effectiveness by focusing on what the firm does best. 
B)  Turn fixed costs into variable costs. 
C)  Reduce costs through lowered cost structure and increased flexibility. 
D)  Improve risk management. 
E)  Improve credibility and image by associating with superior providers.

Question 17

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 18

Green sourcing requires incorporating new criteria for evaluating alternatives.

Accepted Answer

A) True 
 B)False

Question 19

Ownership costs are incurred after the initial purchase and are associated with the ongoing use of the product or material. Which of the following is not an ownership cost listed in the text?

Accepted Answer

A)  Financing costs 
B)  Energy costs 
C)  Taxes 
D)  Maintenance and repair costs 
E)  Supply network costs 
A)  Financing costs 
B)  Energy costs 
C)  Taxes 
D)  Maintenance and repair costs 
E)  Supply network costs

Question 20

Green sourcing is only about finding new environmentally friendly technologies and increasing the use of recyclable materials.

Accepted Answer

A) True 
 B)False

Exam 16: Global Sourcing and Procurement

Firms producing functional products are forced to introduce a steady stream of innovations in order to survive.

These are supply chains that utilize strategies aimed at pooling and sharing resources in a supply chain.

In Hau Lee's uncertainty framework to classify supply chains, a supply chain for functional products with an evolving supply process is called which of the following?

Which of the following is not an improvement-driven reason to outsource?

A firm that controls most of the activities in its supply chain is said to be vertically integrated.

The phenomenon that magnifies the variability in order quantities for goods as orders move through the supply chain from the customer to the producer is called the bullwhip effect.

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

In Hau Lee's uncertainty framework to classify supply chains, a supply chain for functional products with a stable supply process is called which of the following?

Other things remaining the same, if the average aggregate inventory value goes down, then

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

Which of the following of Fisher's product categories includes fashionable clothing, personal computers, and other products that typically have a very brief life cycle?

Functional products include staples that people buy in a wide range of retail outlets, such as grocery stores and gas stations.

First Among Best Solar Inc. announces that they will take back, free of cost, all of their solar panels that are no longer useful. Until now, the cost of disposal was significant. This action reduces which of the following for the customers?

The best strategy for innovative products is to use either a responsive or an agile supply chain.

In conducting a total cost of ownership analysis, it is probably best to use a team representing the key functional areas.

Which of the following is an organizationally driven reason for outsourcing?

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

Green sourcing requires incorporating new criteria for evaluating alternatives.

Ownership costs are incurred after the initial purchase and are associated with the ongoing use of the product or material. Which of the following is not an ownership cost listed in the text?

Green sourcing is only about finding new environmentally friendly technologies and increasing the use of recyclable materials.

Introduction

Strategy

Design of Products and Services

Projects

Strategic Capacity Management

Learning Curves

Manufacturing Processes

Facility Layout

Service Processes

Waiting Line Analysis and Simulation

Process Design and Analysis

Six Sigma Quality

Statistical Quality Control

Lean Supply Chains

Logistics, Distribution, and Transportation

The Internet of Things and Erp

Forecasting

Sales and Operations Planning

Inventory Management

Material Requirements Planning

Workcenter Scheduling

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