Question 1

Cost of Goods Sold (COGS) represents

Accepted Answer

A)  less than 20 percent of sales for most major manufacturers. 
B)  less than 50 percent of sales for most major manufacturers. 
C)  well over 50 percent of sales for most major manufacturers. 
D)  well over 80 percent of sales for most major manufacturers. 
A)  less than 20 percent of sales for most major manufacturers. 
B)  less than 50 percent of sales for most major manufacturers. 
C)  well over 50 percent of sales for most major manufacturers. 
D)  well over 80 percent of sales for most major manufacturers.

Question 2

Quantity discounts lower the unit cost

Accepted Answer

A)  but tend to increase the required batch size and as a result, reduce the cycle inventory. 
B)  but tend to increase the required batch size and as a result the cycle inventory. 
C)  and tend to reduce the required batch size and as a result the cycle inventory. 
D)  and tend to reduce the required batch size and as a result, increase the cycle inventory. 
A)  but tend to increase the required batch size and as a result, reduce the cycle inventory. 
B)  but tend to increase the required batch size and as a result the cycle inventory. 
C)  and tend to reduce the required batch size and as a result the cycle inventory. 
D)  and tend to reduce the required batch size and as a result, increase the cycle inventory.

Question 3

Which type of contract is used when agents act on behalf of a principal and the dealer's margin is set to be the same as the supply chain margin, and the dealer exerts the right amount of effort?

Accepted Answer

A)  Buyback or returns contract 
B)  Revenue-sharing contract 
C)  Quantity flexibility contract 
D)  Two-part tariffs 
A)  Buyback or returns contract 
B)  Revenue-sharing contract 
C)  Quantity flexibility contract 
D)  Two-part tariffs

Question 4

Effective sourcing processes within a firm can improve profits for the firm and total supply chain surplus in a variety of ways.

Accepted Answer

A) True 
 B)False

Question 5

Consider the factors influencing total cost and supplier performance. Which of the following is the LEAST quantifiable factor?

Accepted Answer

A)  Supplier price 
B)  Supplier terms 
C)  Support 
D)  Warehousing cost 
A)  Supplier price 
B)  Supplier terms 
C)  Support 
D)  Warehousing cost

Question 6

An intermediary can increase the supply chain surplus by aggregating inventories across large numbers of customers. This is called

Accepted Answer

A)  capacity aggregation. 
B)  inventory aggregation. 
C)  warehouse aggregation. 
D)  relationship aggregation. 
A)  capacity aggregation. 
B)  inventory aggregation. 
C)  warehouse aggregation. 
D)  relationship aggregation.

Question 7

A downside to which contract is that it leads to surplus inventory that must be salvaged or disposed?

Accepted Answer

A)  Buyback or returns contract 
B)  Revenue-sharing contract 
C)  Quantity flexibility contract 
D)  Hybrid contract 
A)  Buyback or returns contract 
B)  Revenue-sharing contract 
C)  Quantity flexibility contract 
D)  Hybrid contract

Question 8

Unless adding a supplier with a unique and valuable capability clearly adds to total cost, the firm's supply base may be too small.

Accepted Answer

A) True 
 B)False

Question 9

The decision to have a third party perform a supply chain function is called

Accepted Answer

A)  insourcing. 
B)  outsourcing. 
C)  offshoring. 
D)  onshoring. 
A)  insourcing. 
B)  outsourcing. 
C)  offshoring. 
D)  onshoring.

Question 10

Revenue-sharing contracts counter double marginalization by decreasing the cost per unit charged to the retailer, thus effectively decreasing the cost of understocking.

Accepted Answer

A) True 
 B)False

Question 11

To create a win-win negotiation, the two parties must

Accepted Answer

A)  guarantee each other an agreed upon level of business. 
B)  identify more than one issue to negotiate. 
C)  identify an impartial mediator to oversee the negotiations. 
D)  possess an equivalent level of power. 
A)  guarantee each other an agreed upon level of business. 
B)  identify more than one issue to negotiate. 
C)  identify an impartial mediator to oversee the negotiations. 
D)  possess an equivalent level of power.

Question 12

A good supplier scoring and assessment process will primarily track performance along the price dimension when evaluating a supplier.

Accepted Answer

A) True 
 B)False

Question 13

Supplier viability can be especially important if the supplier is providing mission-critical products and it would be easy to find a replacement for them.

Accepted Answer

A) True 
 B)False

Question 14

The value of better information coordination will be linked to the amount of variability introduced into the supply chain as a result of the bullwhip effect.

Accepted Answer

A) True 
 B)False

Question 15

Craigslist and eBay are examples of

Accepted Answer

A)  receivables aggregation. 
B)  inventory aggregation. 
C)  information aggregation. 
D)  relationship aggregation. 
A)  receivables aggregation. 
B)  inventory aggregation. 
C)  information aggregation. 
D)  relationship aggregation.

Question 16

The difference between the values of the buyer and seller is referred to as the

Accepted Answer

A)  value discrepancy. 
B)  spread. 
C)  bargaining surplus. 
D)  negotiation gap. 
A)  value discrepancy. 
B)  spread. 
C)  bargaining surplus. 
D)  negotiation gap.

Question 17

An intermediary can increase the supply chain surplus by decreasing the number of relationships required between multiple buyers and sellers. This is called

Accepted Answer

A)  capacity aggregation. 
B)  inventory aggregation. 
C)  warehouse aggregation. 
D)  relationship aggregation. 
A)  capacity aggregation. 
B)  inventory aggregation. 
C)  warehouse aggregation. 
D)  relationship aggregation.

Question 18

Sourcing a product overseas may have

Accepted Answer

A)  higher product cost and will generally incur a higher inbound transportation cost. 
B)  higher product cost but will generally incur a lower inbound transportation cost. 
C)  lower product cost and will generally incur a lower inbound transportation cost. 
D)  lower product cost but will generally incur a higher inbound transportation cost. 
A)  higher product cost and will generally incur a higher inbound transportation cost. 
B)  higher product cost but will generally incur a lower inbound transportation cost. 
C)  lower product cost and will generally incur a lower inbound transportation cost. 
D)  lower product cost but will generally incur a higher inbound transportation cost.

Question 19

A third party can increase the supply chain surplus by aggregating demand across multiple firms and gaining production economies of scale that no single firm can on its own. This is called

Accepted Answer

A)  capacity aggregation. 
B)  inventory aggregation. 
C)  warehouse aggregation. 
D)  relationship aggregation. 
A)  capacity aggregation. 
B)  inventory aggregation. 
C)  warehouse aggregation. 
D)  relationship aggregation.

Question 20

Understanding the impact of incentives on the actions of a supply chain partner is especially important when

Accepted Answer

A)  there are two or more members in the supply chain. 
B)  the third party's actions are not fully observable. 
C)  more than two firms competing for the same pool of customers. 
D)  the supply chain uses outsourcing. 
A)  there are two or more members in the supply chain. 
B)  the third party's actions are not fully observable. 
C)  more than two firms competing for the same pool of customers. 
D)  the supply chain uses outsourcing.

Cost of Goods Sold (COGS) represents

Quantity discounts lower the unit cost

Which type of contract is used when agents act on behalf of a principal and the dealer's margin is set to be the same as the supply chain margin, and the dealer exerts the right amount of effort?

Effective sourcing processes within a firm can improve profits for the firm and total supply chain surplus in a variety of ways.

Consider the factors influencing total cost and supplier performance. Which of the following is the LEAST quantifiable factor?

An intermediary can increase the supply chain surplus by aggregating inventories across large numbers of customers. This is called

A downside to which contract is that it leads to surplus inventory that must be salvaged or disposed?

Unless adding a supplier with a unique and valuable capability clearly adds to total cost, the firm's supply base may be too small.

The decision to have a third party perform a supply chain function is called

Revenue-sharing contracts counter double marginalization by decreasing the cost per unit charged to the retailer, thus effectively decreasing the cost of understocking.

To create a win-win negotiation, the two parties must

A good supplier scoring and assessment process will primarily track performance along the price dimension when evaluating a supplier.

Supplier viability can be especially important if the supplier is providing mission-critical products and it would be easy to find a replacement for them.

The value of better information coordination will be linked to the amount of variability introduced into the supply chain as a result of the bullwhip effect.

Craigslist and eBay are examples of

The difference between the values of the buyer and seller is referred to as the

An intermediary can increase the supply chain surplus by decreasing the number of relationships required between multiple buyers and sellers. This is called

Sourcing a product overseas may have

A third party can increase the supply chain surplus by aggregating demand across multiple firms and gaining production economies of scale that no single firm can on its own. This is called

Understanding the impact of incentives on the actions of a supply chain partner is especially important when

Understanding the Supply Chain

Supply Chain Performance: Achieving Strategic Fit and Scope

Supply Chain Drivers and Metrics

Designing Distribution Networks and Applications to e-Business

Network Design in the Supply Chain

Designing Global Supply Chain Networks

Demand Forecasting in a Supply Chain

Aggregate Planning in a Supply Chain

Sales and Operations Planning: Planning Supply and Demand in a Supply Chain

Coordination in a Supply Chain

Managing Economies of Scale in the Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Determining the Optimal Level of Product Availability

Transportation in a Supply Chain

Pricing and Revenue Management in a Supply Chain

Sustainability and the Supply Chain

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Exam 15: Sourcing Decisions in a Supply Chain

Cost of Goods Sold (COGS) represents

Quantity discounts lower the unit cost

Which type of contract is used when agents act on behalf of a principal and the dealer's margin is set to be the same as the supply chain margin, and the dealer exerts the right amount of effort?

Effective sourcing processes within a firm can improve profits for the firm and total supply chain surplus in a variety of ways.

Consider the factors influencing total cost and supplier performance. Which of the following is the LEAST quantifiable factor?

An intermediary can increase the supply chain surplus by aggregating inventories across large numbers of customers. This is called

A downside to which contract is that it leads to surplus inventory that must be salvaged or disposed?

Unless adding a supplier with a unique and valuable capability clearly adds to total cost, the firm's supply base may be too small.

The decision to have a third party perform a supply chain function is called

Revenue-sharing contracts counter double marginalization by decreasing the cost per unit charged to the retailer, thus effectively decreasing the cost of understocking.

To create a win-win negotiation, the two parties must

A good supplier scoring and assessment process will primarily track performance along the price dimension when evaluating a supplier.

Supplier viability can be especially important if the supplier is providing mission-critical products and it would be easy to find a replacement for them.

The value of better information coordination will be linked to the amount of variability introduced into the supply chain as a result of the bullwhip effect.

Craigslist and eBay are examples of

The difference between the values of the buyer and seller is referred to as the

An intermediary can increase the supply chain surplus by decreasing the number of relationships required between multiple buyers and sellers. This is called

Sourcing a product overseas may have

A third party can increase the supply chain surplus by aggregating demand across multiple firms and gaining production economies of scale that no single firm can on its own. This is called

Understanding the impact of incentives on the actions of a supply chain partner is especially important when

Understanding the Supply Chain

Supply Chain Performance: Achieving Strategic Fit and Scope

Supply Chain Drivers and Metrics

Designing Distribution Networks and Applications to e-Business

Network Design in the Supply Chain

Designing Global Supply Chain Networks

Demand Forecasting in a Supply Chain

Aggregate Planning in a Supply Chain

Sales and Operations Planning: Planning Supply and Demand in a Supply Chain

Coordination in a Supply Chain

Managing Economies of Scale in the Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Determining the Optimal Level of Product Availability

Transportation in a Supply Chain

Pricing and Revenue Management in a Supply Chain

Sustainability and the Supply Chain

Filters