Question 1

When using the low-cost strategy for supply chain management, a firm should use buffer stocks to ensure speedy supply.

Accepted Answer

A) True 
 B)False

Question 2

________ is a Japanese term that describes suppliers who become part of a company coalition.

Accepted Answer

The answer of ________ is a Japanese term that describes...

Question 3

A firm that employs a low-cost strategy should minimize inventory throughout the supply chain.

Accepted Answer

A) True 
 B)False

Question 4

Competing on a low-cost strategy, Walmart does not require its shrimp and fish suppliers in Southeast Asia to abide by the standards of the Global Aquaculture Alliance.

Accepted Answer

A) True 
 B)False

Question 5

Describe a reverse auction (also known as a Dutch auction).

Accepted Answer

A buyer initiates the process by submitt

Question 6

Cross-sourcing describes the practice of having two suppliers provide every component.

Accepted Answer

A) True 
 B)False

Question 7

________ is an approach that seeks efficiency of operations through the integration of all material acquisition, movement, and storage activities.

Accepted Answer

Logistics

Question 8

While the prices that consumers pay are often negotiated, final prices paid in business-to-business transactions are inflexible.

Accepted Answer

A) True 
 B)False

Question 9

Identify the ten major categories of supply chain risk.

Accepted Answer

(1) supplier failure to deliver; (2) sup

Question 10

The new model of a tight, fast, low-inventory supply chain, operating across political and cultural boundaries, has reduced the overall level of supply chain risk.

Accepted Answer

A) True 
 B)False

Question 11

Explain why once revenue and total logistics costs are considered together, the optimal number of facilities in a distribution network may well increase compared to the optimal number of facilities based on total logistics costs only. Include details about the behavior of relevant cost and revenue elements.

Accepted Answer

Total logistics costs are comprised of i

Question 12

The bullwhip effect refers to the increasing fluctuations in orders that often occur as orders move through the supply chain.

Accepted Answer

A) True 
 B)False

Question 13

Identify three common occurrences that contribute to distortions of information about what is really occurring in the supply chain.

Accepted Answer

(1) local optimization; (2) in

Question 14

What are the three classic types of negotiation strategies?

Accepted Answer

A)  supplier evaluation, supplier development, and supplier selection 
B)  Theory X, Theory Y, and Theory Z 
C)  many suppliers, few suppliers, and keiretsu 
D)  cost-based price model, market-based price model, and competitive bidding 
E)  traditional auctions, reverse auctions, and online exchanges 
A)  supplier evaluation, supplier development, and supplier selection 
B)  Theory X, Theory Y, and Theory Z 
C)  many suppliers, few suppliers, and keiretsu 
D)  cost-based price model, market-based price model, and competitive bidding 
E)  traditional auctions, reverse auctions, and online exchanges

Question 15

The bullwhip effect:

Accepted Answer

A)  occurs as orders are relayed from retailers to distributors to wholesalers to manufacturers. 
B)  results in increasing fluctuations at each step of the sequence. 
C)  increases the costs associated with inventory in the supply chain. 
D)  occurs because of distortions in information in the supply chain. 
E)  All of these are true. 
A)  occurs as orders are relayed from retailers to distributors to wholesalers to manufacturers. 
B)  results in increasing fluctuations at each step of the sequence. 
C)  increases the costs associated with inventory in the supply chain. 
D)  occurs because of distortions in information in the supply chain. 
E)  All of these are true.

Question 16

Which one of the following distribution systems offers speed and reliability when emergency supplies are needed overseas?

Accepted Answer

A)  trucking 
B)  railroads 
C)  airfreight 
D)  waterways 
E)  pipelines 
A)  trucking 
B)  railroads 
C)  airfreight 
D)  waterways 
E)  pipelines

Question 17

Identify three common features of contracts between buyers and suppliers.

Accepted Answer

(1) quantity discoun

Question 18

How are outsourcing and vertical integration related? Can a single firm successfully do both?

Accepted Answer

Outsourcing transfers what were traditio

Question 19

In most manufacturing industries, which of the following would likely represent the largest cost to the firm?

Accepted Answer

A)  transportation 
B)  purchasing 
C)  insurance 
D)  financing 
E)  advertising 
A)  transportation 
B)  purchasing 
C)  insurance 
D)  financing 
E)  advertising

Question 20

Which of the following is an advantage of the postponement technique?

Accepted Answer

A)  reduction in automation 
B)  early customization of the product 
C)  better quality of the product 
D)  reduction in training costs 
E)  reduction in inventory investment 
A)  reduction in automation 
B)  early customization of the product 
C)  better quality of the product 
D)  reduction in training costs 
E)  reduction in inventory investment

Exam 10: Supply Chain Management

When using the low-cost strategy for supply chain management, a firm should use buffer stocks to ensure speedy supply.

________ is a Japanese term that describes suppliers who become part of a company coalition.

A firm that employs a low-cost strategy should minimize inventory throughout the supply chain.

Competing on a low-cost strategy, Walmart does not require its shrimp and fish suppliers in Southeast Asia to abide by the standards of the Global Aquaculture Alliance.

Describe a reverse auction (also known as a Dutch auction).

Cross-sourcing describes the practice of having two suppliers provide every component.

________ is an approach that seeks efficiency of operations through the integration of all material acquisition, movement, and storage activities.

While the prices that consumers pay are often negotiated, final prices paid in business-to-business transactions are inflexible.

Identify the ten major categories of supply chain risk.

The new model of a tight, fast, low-inventory supply chain, operating across political and cultural boundaries, has reduced the overall level of supply chain risk.

The bullwhip effect refers to the increasing fluctuations in orders that often occur as orders move through the supply chain.

Identify three common occurrences that contribute to distortions of information about what is really occurring in the supply chain.

What are the three classic types of negotiation strategies?

The bullwhip effect:

Which one of the following distribution systems offers speed and reliability when emergency supplies are needed overseas?

Identify three common features of contracts between buyers and suppliers.

How are outsourcing and vertical integration related? Can a single firm successfully do both?

In most manufacturing industries, which of the following would likely represent the largest cost to the firm?

Which of the following is an advantage of the postponement technique?

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