Question 1

Because service firms do not acquire goods and services externally, their supply chain management issues are insignificant.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following devices represents an opportunity for technology to improve security of container shipments?

Accepted Answer

A)  devices that identify truck and container location 
B)  devices that sense motion 
C)  devices that measure radiation or temperature 
D)  devices that can communicate the breaking of a container lock or seal 
E)  all of these 
A)  devices that identify truck and container location 
B)  devices that sense motion 
C)  devices that measure radiation or temperature 
D)  devices that can communicate the breaking of a container lock or seal 
E)  all of these

Question 3

Which sourcing strategy is particularly common when the products being sourced are commodities?

Accepted Answer

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

Question 4

Which of the following is NOT an opportunity for effective management in the supply chain?

Accepted Answer

A)  accurate "pull" data 
B)  vendor-managed inventory 
C)  postponement 
D)  local optimization 
E)  CPFR 
A)  accurate "pull" data 
B)  vendor-managed inventory 
C)  postponement 
D)  local optimization 
E)  CPFR

Question 5

Drop shipping:

Accepted Answer

A)  is equivalent to cross-docking. 
B)  is the opposite of a blanket order. 
C)  means the supplier will ship directly to the end consumer, rather than to the seller. 
D)  is the same thing as keiretsu. 
E)  is a good reason to find a new firm to ship your products. 
A)  is equivalent to cross-docking. 
B)  is the opposite of a blanket order. 
C)  means the supplier will ship directly to the end consumer, rather than to the seller. 
D)  is the same thing as keiretsu. 
E)  is a good reason to find a new firm to ship your products.

Question 6

What term is used to describe the outsourcing of logistics?

Accepted Answer

A)  e-logistics 
B)  shipper-managed inventory (SMI) 
C)  hollow logistics 
D)  sub-logistics 
E)  third-party logistics (3PL) 
A)  e-logistics 
B)  shipper-managed inventory (SMI) 
C)  hollow logistics 
D)  sub-logistics 
E)  third-party logistics (3PL)

Question 7

Because the supply chain has become so electronic and automated, opportunities for unethical behavior have been greatly reduced.

Accepted Answer

A) True 
 B)False

Question 8

What term describes a supply chain that is designed to optimize both forward and reverse flows?

Accepted Answer

A)  closed-loop supply chain 
B)  full-journey supply chain 
C)  circular supply chain 
D)  network supply chain 
E)  recycled supply chain 
A)  closed-loop supply chain 
B)  full-journey supply chain 
C)  circular supply chain 
D)  network supply chain 
E)  recycled supply chain

Question 9

Supply chain decisions are not generally strategic in nature, because purchasing is not a large expense for most firms.

Accepted Answer

A) True 
 B)False

Question 10

The supply chain for a brewery would include raw ingredients such as hops and barley as well as manufactured goods such as bottles and cans.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following would NOT be subject to negotiation between a buyer and supplier?

Accepted Answer

A)  price 
B)  credit and delivery terms 
C)  quality standards 
D)  cooperative advertising agreements 
E)  All of these could be negotiated. 
A)  price 
B)  credit and delivery terms 
C)  quality standards 
D)  cooperative advertising agreements 
E)  All of these could be negotiated.

Question 12

What are several advantages of shipping by truck?

Accepted Answer

The advantages of shipping by

Question 13

Identify the four stages of supplier selection.

Accepted Answer

(1) supplier evaluat

Question 14

With the "many suppliers" sourcing strategy, the order usually goes to the supplier that offers the highest quality.

Accepted Answer

A) True 
 B)False

Question 15

Consider a firm with an annual net income of $20 million, revenue of $60 million and cost of goods sold of $15 million. If the balance sheet amounts show $2 million of inventory and $500,000 of property, plant & equipment, how many weeks of supply does the firm hold?

Accepted Answer

A)  7.50 
B)  6.00 
C)  6.93 
D)  0.13 
E)  4.16 
A)  7.50 
B)  6.00 
C)  6.93 
D)  0.13 
E)  4.16

Question 16

Once revenue and total logistics costs are considered together, the optimal number of facilities in a distribution network may increase compared to the optimal number of facilities based on total logistics costs only.

Accepted Answer

A) True 
 B)False

Question 17

What three logistics-related costs are relevant when analyzing the choice of number of facilities in a distribution network?

Accepted Answer

A)  inventory costs, production costs, and transportation costs 
B)  inventory costs, production costs, and facility costs 
C)  inventory costs, transportation costs, and facility costs 
D)  facility costs, production costs, and transportation costs 
E)  facility costs, inventory costs, and marketing costs 
A)  inventory costs, production costs, and transportation costs 
B)  inventory costs, production costs, and facility costs 
C)  inventory costs, transportation costs, and facility costs 
D)  facility costs, production costs, and transportation costs 
E)  facility costs, inventory costs, and marketing costs

Question 18

Warehouses sometimes perform certain other functions besides storing goods. Which of the following is NOT typically one of those functions?

Accepted Answer

A)  purchasing 
B)  postponement 
C)  break-bulk activities 
D)  consolidation point 
E)  cross-docking 
A)  purchasing 
B)  postponement 
C)  break-bulk activities 
D)  consolidation point 
E)  cross-docking

Question 19

E-procurement:

Accepted Answer

A)  works best in long-term contract situations but is not suited for auctions. 
B)  is purchasing facilitated through the Internet. 
C)  has many benefits but requires a lot of paperwork. 
D)  is illegal in all states except Nevada and New Jersey. 
E)  All of these are true of e-procurement. 
A)  works best in long-term contract situations but is not suited for auctions. 
B)  is purchasing facilitated through the Internet. 
C)  has many benefits but requires a lot of paperwork. 
D)  is illegal in all states except Nevada and New Jersey. 
E)  All of these are true of e-procurement.

Question 20

Logistics management can provide a competitive advantage through improved customer service.

Accepted Answer

A) True 
 B)False

Exam 10: Supply Chain Management

Because service firms do not acquire goods and services externally, their supply chain management issues are insignificant.

Which of the following devices represents an opportunity for technology to improve security of container shipments?

Which sourcing strategy is particularly common when the products being sourced are commodities?

Which of the following is NOT an opportunity for effective management in the supply chain?

Drop shipping:

What term is used to describe the outsourcing of logistics?

Because the supply chain has become so electronic and automated, opportunities for unethical behavior have been greatly reduced.

What term describes a supply chain that is designed to optimize both forward and reverse flows?

Supply chain decisions are not generally strategic in nature, because purchasing is not a large expense for most firms.

The supply chain for a brewery would include raw ingredients such as hops and barley as well as manufactured goods such as bottles and cans.

Which of the following would NOT be subject to negotiation between a buyer and supplier?

What are several advantages of shipping by truck?

Identify the four stages of supplier selection.

With the "many suppliers" sourcing strategy, the order usually goes to the supplier that offers the highest quality.

Consider a firm with an annual net income of $20 million, revenue of $60 million and cost of goods sold of $15 million. If the balance sheet amounts show $2 million of inventory and $500,000 of property, plant & equipment, how many weeks of supply does the firm hold?

Once revenue and total logistics costs are considered together, the optimal number of facilities in a distribution network may increase compared to the optimal number of facilities based on total logistics costs only.

What three logistics-related costs are relevant when analyzing the choice of number of facilities in a distribution network?

Warehouses sometimes perform certain other functions besides storing goods. Which of the following is NOT typically one of those functions?

E-procurement:

Logistics management can provide a competitive advantage through improved customer service.

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Process Strategies

Location Strategies

Human Resources, Job Design, and Work Measurement

Inventory Management

Aggregate Planning and Sop

Material Requirements Planning Mrp and Erp

Short-Term Scheduling

Lean Operations

Maintenance and Reliability

Decision-Making Tools

Linear Programming

Transportation Models

Waiting-Line Models

Learning Curves

Simulation

Applying Analytics to Big Data in Operations Management

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