Question 1

The transfer of some of what are traditional internal activities and resources of a firm to outside vendors is:

Accepted Answer

A)  a standard use of the make-or-buy decision. 
B)  not allowed by the ethics code of the Supply Management Institute. 
C)  offshoring. 
D)  outsourcing. 
E)  keiretsu. 
A)  a standard use of the make-or-buy decision. 
B)  not allowed by the ethics code of the Supply Management Institute. 
C)  offshoring. 
D)  outsourcing. 
E)  keiretsu.

Question 2

In addition to establishing standards for themselves, responsible firms should establish ethical standards for their suppliers.

Accepted Answer

A) True 
 B)False

Question 3

Identify some technological advances that can serve to improve logistics management and also improve shipping security.

Accepted Answer

They include devices that can detect a b

Question 4

The Institute for Supply Management:

Accepted Answer

A)  establishes laws and regulations for supply management. 
B)  is an agency of the United Nations charged with promoting ethical conduct globally. 
C)  publishes the principles and standards for ethical supply management conduct. 
D)  prohibits backward integration into developing economies. 
E)  grants Ph.D. degrees in purchasing. 
A)  establishes laws and regulations for supply management. 
B)  is an agency of the United Nations charged with promoting ethical conduct globally. 
C)  publishes the principles and standards for ethical supply management conduct. 
D)  prohibits backward integration into developing economies. 
E)  grants Ph.D. degrees in purchasing.

Question 5

Consider a firm with an annual net income of $20 million, revenue of $60 million and cost of goods sold of $20 million. If the balance sheet amounts show $2 million of inventory and $500,000 of property, plant & equipment, what is the inventory turnover?

Accepted Answer

A)  12.50 
B)  10.00 
C)  40.00 
D)  8.00 
E)  30.00 
A)  12.50 
B)  10.00 
C)  40.00 
D)  8.00 
E)  30.00

Question 6

A restaurant runs a special promotion on lobster and plans to sell twice as many lobsters as usual. When this large order is sent to the distributor, the distributor assumes the large size is a trend, not a one-time event. The distributor therefore places an even larger order with the lobsterman. This behavior is the result of which of the following?

Accepted Answer

A)  double marginalization 
B)  the bullwhip effect 
C)  CPFR 
D)  postponement 
E)  vendor-managed inventory 
A)  double marginalization 
B)  the bullwhip effect 
C)  CPFR 
D)  postponement 
E)  vendor-managed inventory

Question 7

Outsourcing refers to transferring a firm's activities that have traditionally been external to internal suppliers.

Accepted Answer

A) True 
 B)False

Question 8

Keiretsu refers to a company coalition that is part collaboration, part purchasing from many suppliers, and part vertical integration.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following describes using one supplier for a component and a second supplier for another component, where each supplier acts as a backup for the other?

Accepted Answer

A)  outsourcing 
B)  dual-sourcing 
C)  cross-sourcing 
D)  backup-sourcing 
E)  parallel-sourcing 
A)  outsourcing 
B)  dual-sourcing 
C)  cross-sourcing 
D)  backup-sourcing 
E)  parallel-sourcing

Question 10

What is the trucking industry doing to improve efficiency?

Accepted Answer

Trucking firms are using computers to mo

Question 11

What are the three classic negotiation strategies? Briefly describe each of them.

Accepted Answer

The three classic strategies for negotia

Question 12

________ is the term describing purchasing facilitated through the Internet.

Accepted Answer

The answer of ________ is the term describing purchasing facilitated...

Question 13

All EXCEPT which of the following are "opportunities" in managing the integrated supply chain?

Accepted Answer

A)  postponement 
B)  drop shipping 
C)  blanket orders 
D)  standardization 
E)  line balancing 
A)  postponement 
B)  drop shipping 
C)  blanket orders 
D)  standardization 
E)  line balancing

Question 14

A grocery chain is interested in exploring the impact effective supply chain management would have. Suppose that for every $1 of sales, 4% is profit, 50% is spent in the supply chain, and the remaining 46% is evenly divided between fixed and production costs. If the chain can save $1 in the supply chain it would take how many dollars of increased sales to have the same increase in profit? Assume that fixed costs are fixed so that the portion of increased sales allocated to fixed costs is instead profit (27% profit margin combined now).

Accepted Answer

Suppose initially the firm sells $100 of

Question 15

Channel assembly, which sends components and modules to be assembled by a distributor, treats these distributors as manufacturing partners.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following does NOT contribute to distortions of information about what is really occurring in the supply chain?

Accepted Answer

A)  local optimization 
B)  quantity discounts 
C)  quotas 
D)  large lots 
E)  drop shipping 
A)  local optimization 
B)  quantity discounts 
C)  quotas 
D)  large lots 
E)  drop shipping

Question 17

Which of the following is NOT one of the five parts of the Supply Chain Operations Reference (SCOR) model?

Accepted Answer

A)  Make 
B)  Sell 
C)  Plan 
D)  Source 
E)  Return 
A)  Make 
B)  Sell 
C)  Plan 
D)  Source 
E)  Return

Question 18

Outsourcing:

Accepted Answer

A)  transfers traditional internal activities to outside vendors. 
B)  utilizes the efficiency that comes with specialization. 
C)  allows the outsourcing firm to focus on its key success factors. 
D)  All of these are true of outsourcing. 
E)  None of these is true of outsourcing. 
A)  transfers traditional internal activities to outside vendors. 
B)  utilizes the efficiency that comes with specialization. 
C)  allows the outsourcing firm to focus on its key success factors. 
D)  All of these are true of outsourcing. 
E)  None of these is true of outsourcing.

Question 19

When Daimler and BMW pooled resources to develop standardized auto components, the sourcing strategy could best be described by which of the following?

Accepted Answer

A)  keiretsu 
B)  virtual companies 
C)  joint venture 
D)  vertical integration 
E)  few suppliers 
A)  keiretsu 
B)  virtual companies 
C)  joint venture 
D)  vertical integration 
E)  few suppliers

Question 20

Which of the following best describes Vizio's sourcing strategy?

Accepted Answer

A)  few suppliers 
B)  keiretsu 
C)  joint venture 
D)  vertical integration 
E)  virtual company 
A)  few suppliers 
B)  keiretsu 
C)  joint venture 
D)  vertical integration 
E)  virtual company

Exam 10: Supply Chain Management

The transfer of some of what are traditional internal activities and resources of a firm to outside vendors is:

In addition to establishing standards for themselves, responsible firms should establish ethical standards for their suppliers.

Identify some technological advances that can serve to improve logistics management and also improve shipping security.

The Institute for Supply Management:

Consider a firm with an annual net income of $20 million, revenue of $60 million and cost of goods sold of $20 million. If the balance sheet amounts show $2 million of inventory and $500,000 of property, plant & equipment, what is the inventory turnover?

Outsourcing refers to transferring a firm's activities that have traditionally been external to internal suppliers.

Keiretsu refers to a company coalition that is part collaboration, part purchasing from many suppliers, and part vertical integration.

Which of the following describes using one supplier for a component and a second supplier for another component, where each supplier acts as a backup for the other?

What is the trucking industry doing to improve efficiency?

What are the three classic negotiation strategies? Briefly describe each of them.

________ is the term describing purchasing facilitated through the Internet.

All EXCEPT which of the following are "opportunities" in managing the integrated supply chain?

Channel assembly, which sends components and modules to be assembled by a distributor, treats these distributors as manufacturing partners.

Which of the following does NOT contribute to distortions of information about what is really occurring in the supply chain?

Which of the following is NOT one of the five parts of the Supply Chain Operations Reference (SCOR) model?

Outsourcing:

When Daimler and BMW pooled resources to develop standardized auto components, the sourcing strategy could best be described by which of the following?

Which of the following best describes Vizio's sourcing strategy?

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