Question 1

Which of the following best describes backward integration?

Accepted Answer

A)  sell products to a supplier or a distributor 
B)  develop the ability to produce products that complement the original product 
C)  produce goods or services previously purchased 
D)  develop the ability to produce the specified good more efficiently than before 
E)  build long-term partnerships with a few suppliers 
A)  sell products to a supplier or a distributor 
B)  develop the ability to produce products that complement the original product 
C)  produce goods or services previously purchased 
D)  develop the ability to produce the specified good more efficiently than before 
E)  build long-term partnerships with a few suppliers

Question 2

A disadvantage of the "few suppliers" sourcing strategy is:

Accepted Answer

A)  the risk of not being ready for technological change. 
B)  the lack of cost savings for customers and suppliers. 
C)  possible violations of the Sherman Antitrust Act. 
D)  the high cost of changing partners. 
E)  the suppliers are less likely to understand the broad objectives of the procuring firm and the end customer. 
A)  the risk of not being ready for technological change. 
B)  the lack of cost savings for customers and suppliers. 
C)  possible violations of the Sherman Antitrust Act. 
D)  the high cost of changing partners. 
E)  the suppliers are less likely to understand the broad objectives of the procuring firm and the end customer.

Question 3

Japanese manufacturers often pursue a strategy that is part collaboration, part purchasing from a few suppliers, and part vertical integration. What is this approach called?

Accepted Answer

A)  kanban 
B)  keiretsu 
C)  samurai 
D)  poka-yoke 
E)  kaizen 
A)  kanban 
B)  keiretsu 
C)  samurai 
D)  poka-yoke 
E)  kaizen

Question 4

Benchmark firms have driven down costs of supply-chain performance.

Accepted Answer

A) True 
 B)False

Question 5

With cross-sourcing, how many suppliers provide each component on a regular basis (i.e., excluding backup suppliers)?

Accepted Answer

A)  1 
B)  2 
C)  3 
D)  equal to the total number of components 
E)  equal to the number of countries to which the final product is sold 
A)  1 
B)  2 
C)  3 
D)  equal to the total number of components 
E)  equal to the number of countries to which the final product is sold

Question 6

While freight rates are often based on very complicated pricing systems, in general, the primary freight price factor is based on which of the following attributes?

Accepted Answer

A)  damage record 
B)  on-time delivery 
C)  door-to-door service 
D)  speed of shipment 
E)  consolidation capabilities 
A)  damage record 
B)  on-time delivery 
C)  door-to-door service 
D)  speed of shipment 
E)  consolidation capabilities

Question 7

TAL Apparel's management of its supply chain for Stafford shirts sold at JCPenney is an example of which of the following?

Accepted Answer

A)  blanket orders 
B)  standardization 
C)  postponement 
D)  lot size reduction 
E)  single-stage control of replenishment 
A)  blanket orders 
B)  standardization 
C)  postponement 
D)  lot size reduction 
E)  single-stage control of replenishment

Question 8

Outsourcing is a form of specialization that allows the outsourcing firm to focus on its key success factors.

Accepted Answer

A) True 
 B)False

Question 9

A furniture maker has delivered a dining set directly to the end consumer rather than to the furniture store. The furniture maker is practicing which of the following?

Accepted Answer

A)  postponement 
B)  drop shipping 
C)  channel assembly 
D)  passing the buck 
E)  float reduction 
A)  postponement 
B)  drop shipping 
C)  channel assembly 
D)  passing the buck 
E)  float reduction

Question 10

Which of the following is NOT a typical benefit of centralized purchasing?

Accepted Answer

A)  leverage purchase volume for better pricing 
B)  develop specialized staff expertise 
C)  reduce the duplication of tasks 
D)  reduce lead times 
E)  promote standardization 
A)  leverage purchase volume for better pricing 
B)  develop specialized staff expertise 
C)  reduce the duplication of tasks 
D)  reduce lead times 
E)  promote standardization

Question 11

Transferring to external vendors a firm's activities that have traditionally been internal is known as ________.

Accepted Answer

The answer of Transferring to external vendors a firm's activities...

Question 12

In supply chain management, ethical issues:

Accepted Answer

A)  are particularly important because of the enormous opportunities for abuse. 
B)  may be guided by company rules and codes of conduct. 
C)  become more complex the more global is the supply chain. 
D)  may be guided by the principles and standards of the Institute for Supply Management. 
E)  All of these are true. 
A)  are particularly important because of the enormous opportunities for abuse. 
B)  may be guided by company rules and codes of conduct. 
C)  become more complex the more global is the supply chain. 
D)  may be guided by the principles and standards of the Institute for Supply Management. 
E)  All of these are true.

Question 13

A manufacturing plant averaged $540 of raw materials, $230 of work-in-process inventory, and $1230 of finished goods inventory during the month. If the cost of goods sold this month amounted to $12,000, what is the inventory turnover for the month?

Accepted Answer

Monthly inventory turnover = M

Question 14

Vertical integration, whether forward or backward, requires the firm to become more specialized.

Accepted Answer

A) True 
 B)False

Question 15

A carpet manufacturer has delivered carpet directly to the end consumer rather than to the carpet dealer. The carpet manufacturer is practicing which of the following?

Accepted Answer

A)  postponement 
B)  cross-docking 
C)  channel assembly 
D)  drop shipping 
E)  float reduction 
A)  postponement 
B)  cross-docking 
C)  channel assembly 
D)  drop shipping 
E)  float reduction

Question 16

Suppliers are also known as ________.

Accepted Answer

The answer of Suppliers are also known as ________....

Question 17

In this age of increasing specialization, low communication cost, and fast transportation, companies are making more and buying less.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is NOT one of the risk mitigation tactics for the supply chain risk category of suppliers failing to deliver?

Accepted Answer

A)  use multiple suppliers 
B)  effective contracts with penalties 
C)  subcontractors on retainer 
D)  require overnight delivery 
E)  pre-planning 
A)  use multiple suppliers 
B)  effective contracts with penalties 
C)  subcontractors on retainer 
D)  require overnight delivery 
E)  pre-planning

Question 19

Savings in the supply chain exert more leverage as the firm's net profit margin decreases.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is NOT an advantage of the "few suppliers" sourcing strategy?

Accepted Answer

A)  suppliers have a learning curve that yields lower transaction and production costs 
B)  suppliers are more likely to understand the broad objectives of the end customer 
C)  less vulnerable trade secrets 
D)  creation of value by allowing suppliers to have economies of scale 
E)  suppliers' willingness to provide technological expertise 
A)  suppliers have a learning curve that yields lower transaction and production costs 
B)  suppliers are more likely to understand the broad objectives of the end customer 
C)  less vulnerable trade secrets 
D)  creation of value by allowing suppliers to have economies of scale 
E)  suppliers' willingness to provide technological expertise

Exam 10: Supply Chain Management

Which of the following best describes backward integration?

A disadvantage of the "few suppliers" sourcing strategy is:

Japanese manufacturers often pursue a strategy that is part collaboration, part purchasing from a few suppliers, and part vertical integration. What is this approach called?

Benchmark firms have driven down costs of supply-chain performance.

With cross-sourcing, how many suppliers provide each component on a regular basis (i.e., excluding backup suppliers)?

While freight rates are often based on very complicated pricing systems, in general, the primary freight price factor is based on which of the following attributes?

TAL Apparel's management of its supply chain for Stafford shirts sold at JCPenney is an example of which of the following?

Outsourcing is a form of specialization that allows the outsourcing firm to focus on its key success factors.

A furniture maker has delivered a dining set directly to the end consumer rather than to the furniture store. The furniture maker is practicing which of the following?

Which of the following is NOT a typical benefit of centralized purchasing?

Transferring to external vendors a firm's activities that have traditionally been internal is known as ________.

In supply chain management, ethical issues:

A manufacturing plant averaged $540 of raw materials, $230 of work-in-process inventory, and $1230 of finished goods inventory during the month. If the cost of goods sold this month amounted to $12,000, what is the inventory turnover for the month?

Vertical integration, whether forward or backward, requires the firm to become more specialized.

A carpet manufacturer has delivered carpet directly to the end consumer rather than to the carpet dealer. The carpet manufacturer is practicing which of the following?

Suppliers are also known as ________.

In this age of increasing specialization, low communication cost, and fast transportation, companies are making more and buying less.

Which of the following is NOT one of the risk mitigation tactics for the supply chain risk category of suppliers failing to deliver?

Savings in the supply chain exert more leverage as the firm's net profit margin decreases.

Which of the following is NOT an advantage of the "few suppliers" sourcing strategy?

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Process Strategies

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Human Resources, Job Design, and Work Measurement

Inventory Management

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Material Requirements Planning Mrp and Erp

Short-Term Scheduling

Lean Operations

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Decision-Making Tools

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Transportation Models

Waiting-Line Models

Learning Curves

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