Question 1

Which of the following is not a benefit of outsourcing?

Accepted Answer

A)  comparative labor costs 
B)  increased logistics costs 
C)  reduction of transaction costs through use of the Internet 
D)  technology transfer to another country or company 
A)  comparative labor costs 
B)  increased logistics costs 
C)  reduction of transaction costs through use of the Internet 
D)  technology transfer to another country or company

Question 2

Scenario 12.1
You currently make a part on old equipment at a cost of $50,000 per year and a variable cost of $20 / unit. You have found an outside supplier who will make the part for $15 / unit if you will pay their annual fixed costs of $200,000 / year. The following table summarizes the details of this make versus buy decision.
  
-Use Scenario 12.1 to answer the question. What are total costs to buy an annual quantity of 40,000 units?

Accepted Answer

A)  $400,000 
B)  $500,000 
C)  $800,000 
D)  $850,000 
A)  $400,000 
B)  $500,000 
C)  $800,000 
D)  $850,000

Question 3

Rome Corporation is a supplier of ball bearings. Because of the specialized manufacturing process employed, considerable work-in-process and raw material inventories are created. The current inventory levels are $1,500,000 and $3,775,000, respectively. In addition, finished goods inventory is $3,500,000, and sales (at cost) for the current year are expected to be about $28 million. Assume they operate 50 weeks per year.
a. What is their total inventory (measured as weeks of supply)?
b. What is their inventory turnover?

Accepted Answer

a. Weeks of supply = average aggregate i

Question 4

Scenario 12.1
You currently make a part on old equipment at a cost of $50,000 per year and a variable cost of $20 / unit. You have found an outside supplier who will make the part for $15 / unit if you will pay their annual fixed costs of $200,000 / year. The following table summarizes the details of this make versus buy decision.
  
-Use Scenario 12.1 to answer the question. For what range of output would you prefer to make?

Accepted Answer

A)  40,001 or more units per year 
B)  35,001 - 40,000 units per year 
C)  30,001 to 35,000 units per year 
D)  0 - 30,000 units per year 
A)  40,001 or more units per year 
B)  35,001 - 40,000 units per year 
C)  30,001 to 35,000 units per year 
D)  0 - 30,000 units per year

Question 5

One way to gain control over suppliers in a chain is to buy a controlling interest in them, known as ________.

Accepted Answer

backward i

Question 6

When a company uses ________, it is moving upstream in the supply chain toward the source of raw materials.

Accepted Answer

backward i

Question 7

The VP of Finance studied the printing costs at the university and knew it was time for bold, decisive action. The annual fixed cost of printing at the school was $850,000 and the per-page cost was one cent. Fortunately, his brother-in-law happened to own a company that would lease the printers to the university for only $600,000. The only issue to be decided was what the per-page cost would be for the leased printers. On average, the university had been printing about 10,000,000 pages per year. What would a break-even per-page printing cost be given the average printing volume?

Accepted Answer

Q = @#LAT-DLM&
10,00

Question 8

Discuss the major differences between supply chains for services and manufacturing. Which supply chain is easier to coordinate effectively?

Accepted Answer

Supply chain design for a service provid

Question 9

Responsive supply chains work best when firms offer a low variety of services or products and demand predictability is high.

Accepted Answer

A) True 
 B)False

Question 10

________ is essentially standardization in chunks.

Accepted Answer

The answer of ________ is essentially standardization in chunks....

Question 11

Scenario 12.2
SAGE Inc. receives too many applications each year for the Global MBA program so they turn to their network of partners for assistance. Nothing in this world is free, of course, so their partners provide quotes that include a per student cost as well as a facilities cost that SAGE would pay regardless of the number of students they sent there. The costs in Rupees (   ) are elegantly summarized in the table below.
  
-Use Scenario 12.2 to answer the question. How much cheaper is the Wisconsin alternative when SAGE is indifferent between Oklahoma and England?

Accepted Answer

A)  about ₹ 3,221 
B)  about ₹ 2,967 
C)  about ₹ 4,428 
D)  about ₹ 3,967 
A)  about ₹ 3,221 
B)  about ₹ 2,967 
C)  about ₹ 4,428 
D)  about ₹ 3,967

Question 12

Some discount stores are able to sell items before they have to pay their suppliers, resulting in a negative:

Accepted Answer

A)  net profit. 
B)  return on assets. 
C)  number of inventory turns. 
D)  cash-to-cash measure. 
A)  net profit. 
B)  return on assets. 
C)  number of inventory turns. 
D)  cash-to-cash measure.

Question 13

________ is an inventory measure obtained by dividing the average aggregate inventory value by sales per week at cost.

Accepted Answer

The answer of ________ is an inventory measure obtained by...

Question 14

Increasing the percentage of on-time deliveries to customers actually reduces the total revenue of a firm.

Accepted Answer

A) True 
 B)False

Question 15

In ________, the product is built to customer specifications from a stock of existing components.

Accepted Answer

assemble-t

Question 16

An efficient supply chain should be preferred when:

Accepted Answer

A)  product variety is high. 
B)  competitive priority is customization. 
C)  demand is highly predictable. 
D)  demand is unpredictable. 
A)  product variety is high. 
B)  competitive priority is customization. 
C)  demand is highly predictable. 
D)  demand is unpredictable.

Question 17

Padco averages $15 million worth of inventory in all of its worldwide locations. They operate 51 weeks a year and each week average $3 million in sales (at cost). Their inventory turnover is:

Accepted Answer

A)  1.13 turns. 
B)  5 turns. 
C)  10.2 turns. 
D)  17 turns. 
A)  1.13 turns. 
B)  5 turns. 
C)  10.2 turns. 
D)  17 turns.

Question 18

Supply chain design for a service provider is driven primarily by the need to control the materials it consumes as it delivers its various services.

Accepted Answer

A) True 
 B)False

Question 19

When a customer orders an item that is a completely new and different product, the company's supply chain must be able to deliver an item that is ________-to-order.

Accepted Answer

The answer of When a customer orders an item that...

Question 20

Champion Cooling Company remanufactures window air conditioners during the off-season months for sales during the scorching months of June, July, and August in the Oklahoma City area. Their average inventory of air conditioners is shown in the following table. The company operates 50 weeks a year and has average weekly sales of $3,750 and expects to sell $135,000 worth of product in a year.
   
a. What is their average aggregate inventory value?
b. What is their total inventory (measured as weeks of supply)?
c. What is their inventory turnover?

Accepted Answer

a. Avg Aggregate Inventory Val

Which of the following is not a benefit of outsourcing?

One way to gain control over suppliers in a chain is to buy a controlling interest in them, known as ________.

When a company uses ________, it is moving upstream in the supply chain toward the source of raw materials.

Discuss the major differences between supply chains for services and manufacturing. Which supply chain is easier to coordinate effectively?

Responsive supply chains work best when firms offer a low variety of services or products and demand predictability is high.

________ is essentially standardization in chunks.

Some discount stores are able to sell items before they have to pay their suppliers, resulting in a negative:

________ is an inventory measure obtained by dividing the average aggregate inventory value by sales per week at cost.

Increasing the percentage of on-time deliveries to customers actually reduces the total revenue of a firm.

In ________, the product is built to customer specifications from a stock of existing components.

An efficient supply chain should be preferred when:

Padco averages $15 million worth of inventory in all of its worldwide locations. They operate 51 weeks a year and each week average $3 million in sales (at cost). Their inventory turnover is:

Supply chain design for a service provider is driven primarily by the need to control the materials it consumes as it delivers its various services.

When a customer orders an item that is a completely new and different product, the company's supply chain must be able to deliver an item that is ________-to-order.

Using Operations to Create Value

Process Strategy and Analysis

Quality and Performance

Capacity Planning

Constraint Management

Lean Systems

Project Management

Forecasting

Inventory Management

Operations Planning and Scheduling

Resource Planning

Supply Chain Logistic Networks

Supply Chain Integration

Supply Chain Sustainability

Supplement A Decision Making

Supplement J Operations Scheduling

Supplement K Layout

Supplement B Waiting Lines

Supplement C Special Inventory Models

Supplement D Linear Programming

Supplement E Simulation

Supplement F Financial Analysis

Supplement G Acceptance Sampling Plans

Supplement H Measuring Output Rates

Supplement I Learning Curve Analysis

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Exam 12: Supply Chain Design

Which of the following is not a benefit of outsourcing?

One way to gain control over suppliers in a chain is to buy a controlling interest in them, known as ________.

When a company uses ________, it is moving upstream in the supply chain toward the source of raw materials.

Discuss the major differences between supply chains for services and manufacturing. Which supply chain is easier to coordinate effectively?

Responsive supply chains work best when firms offer a low variety of services or products and demand predictability is high.

________ is essentially standardization in chunks.

Some discount stores are able to sell items before they have to pay their suppliers, resulting in a negative:

________ is an inventory measure obtained by dividing the average aggregate inventory value by sales per week at cost.

Increasing the percentage of on-time deliveries to customers actually reduces the total revenue of a firm.

In ________, the product is built to customer specifications from a stock of existing components.

An efficient supply chain should be preferred when:

Padco averages $15 million worth of inventory in all of its worldwide locations. They operate 51 weeks a year and each week average $3 million in sales (at cost). Their inventory turnover is:

Supply chain design for a service provider is driven primarily by the need to control the materials it consumes as it delivers its various services.

When a customer orders an item that is a completely new and different product, the company's supply chain must be able to deliver an item that is ________-to-order.

Using Operations to Create Value

Process Strategy and Analysis

Quality and Performance

Capacity Planning

Constraint Management

Lean Systems

Project Management

Forecasting

Inventory Management

Operations Planning and Scheduling

Resource Planning

Supply Chain Logistic Networks

Supply Chain Integration

Supply Chain Sustainability

Supplement A Decision Making

Supplement J Operations Scheduling

Supplement K Layout

Supplement B Waiting Lines

Supplement C Special Inventory Models

Supplement D Linear Programming

Supplement E Simulation

Supplement F Financial Analysis

Supplement G Acceptance Sampling Plans

Supplement H Measuring Output Rates

Supplement I Learning Curve Analysis

Filters