Question 1

Supplier performance must be rated on many different factors because

Accepted Answer

A)  the factors impact the total supply chain cost. 
B)  the factors minimize the supply chain involvement. 
C)  the factors reduce the impact of price. 
D)  the factors maximize the supply chain price. 
A)  the factors impact the total supply chain cost. 
B)  the factors minimize the supply chain involvement. 
C)  the factors reduce the impact of price. 
D)  the factors maximize the supply chain price.

Question 2

A contract that allows the buyer to modify the order (within limits agreed to by the supplier) as demand visibility increases closer to the point of sale is a

Accepted Answer

A)  buyback or returns contract. 
B)  revenue-sharing contract. 
C)  quantity flexibility contract. 
D)  quantity discount contract. 
A)  buyback or returns contract. 
B)  revenue-sharing contract. 
C)  quantity flexibility contract. 
D)  quantity discount contract.

Question 3

A contract where the buyer pays a minimal amount for each unit purchased from the supplier but shares a fraction of the revenue for each unit sold is a

Accepted Answer

A)  buyback or returns contract. 
B)  revenue-sharing contract. 
C)  quantity flexibility contract. 
D)  quantity discount contract. 
A)  buyback or returns contract. 
B)  revenue-sharing contract. 
C)  quantity flexibility contract. 
D)  quantity discount contract.

Question 4

Using a third party requires a firm to share demand information and in some cases intellectual property. This risk would be described as

Accepted Answer

A)  leakage of sensitive data and information. 
B)  underestimation of the cost of coordination. 
C)  reduced customer/supplier contact. 
D)  loss of internal capability. 
A)  leakage of sensitive data and information. 
B)  underestimation of the cost of coordination. 
C)  reduced customer/supplier contact. 
D)  loss of internal capability.

Question 5

Two-part tariffs and threshold contracts can be used to counter double marginalization and increase agent effort in a supply chain.

Accepted Answer

A) True 
 B)False

Question 6

A third party increases the supply chain surplus if it aggregates the sourcing for many small players and facilitates economies of scale in ordering, inbound transportation and production. This is called

Accepted Answer

A)  capacity aggregation. 
B)  procurement aggregation. 
C)  information aggregation. 
D)  relationship aggregation. 
A)  capacity aggregation. 
B)  procurement aggregation. 
C)  information aggregation. 
D)  relationship aggregation.

Question 7

An third party may increase the supply chain surplus by aggregating warehousing needs over several firms. 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 8

The selection of suppliers, design of supplier contracts, product design collaboration, procurement of material, and evaluation of supplier performance are a part of

Accepted Answer

A)  procurement. 
B)  sourcing. 
C)  supplier scoring and assessment. 
D)  supplier selection. 
A)  procurement. 
B)  sourcing. 
C)  supplier scoring and assessment. 
D)  supplier selection.

Question 9

A contract that decreases overall costs but leads to higher lot sizes and thus higher levels of inventory in the supply chain is a

Accepted Answer

A)  buyback or returns contract. 
B)  revenue-sharing contract. 
C)  quantity flexibility contract. 
D)  quantity discount contract. 
A)  buyback or returns contract. 
B)  revenue-sharing contract. 
C)  quantity flexibility contract. 
D)  quantity discount contract.

Question 10

The procurement process for indirect materials should focus on decreasing the transaction cost for each order.

Accepted Answer

A) True 
 B)False

Question 11

Scenario 15.1 - The Jerk Store
George takes an eclectic mix of spices to make his authentic jerk seasoning as a rub for chicken, pork, and fish. The ingredients and packaging cost $1.50 and he sells the packets by the case to Jerk Stores in the Caribbean for $2.50 per packet. Tourists to the islands gladly pay $8.75 for these packets, eager to host their friends for an authentic Caribbean meal and bore them with vacation photos upon their return. The demand for the packets is normally distributed, with a mean of 2500 packets and a standard deviation of 600.
-If George and a single Jerk Store act as a vertically integrated supply chain, what is the total supply chain expected profit if an optimal order quantity is placed?

Accepted Answer

A)  $16,462 
B)  $16,571 
C)  $16,680 
D)  $16,789 
A)  $16,462 
B)  $16,571 
C)  $16,680 
D)  $16,789

Question 12

As the replenishment lead time from a supplier grows, the amount of safety inventory that needs to be held by the buyer also grows in direct proportion to the replenishment lead time.

Accepted Answer

A) True 
 B)False

Question 13

As the replenishment lot size grows, the cycle inventory at the firm grows, thus increasing the cost of holding inventory.

Accepted Answer

A) True 
 B)False

Question 14

To improve overall profits, the supplier must design a contract that requires the buyer to share in some of the supplier's demand uncertainty.

Accepted Answer

A) True 
 B)False

Question 15

Scenario 15.1 - The Jerk Store
George takes an eclectic mix of spices to make his authentic jerk seasoning as a rub for chicken, pork, and fish. The ingredients and packaging cost $1.50 and he sells the packets by the case to Jerk Stores in the Caribbean for $2.50 per packet. Tourists to the islands gladly pay $8.75 for these packets, eager to host their friends for an authentic Caribbean meal and bore them with vacation photos upon their return. The demand for the packets is normally distributed, with a mean of 2500 packets and a standard deviation of 600.
What is the difference in order quantity and profit achieved if George and The Jerk Store act independently versus if they behaved as a vertically integrated supply chain?

Accepted Answer

For The Jerk Store, the cost of understo

Question 16

Scenario 15.1 - The Jerk Store
George takes an eclectic mix of spices to make his authentic jerk seasoning as a rub for chicken, pork, and fish. The ingredients and packaging cost $1.50 and he sells the packets by the case to Jerk Stores in the Caribbean for $2.50 per packet. Tourists to the islands gladly pay $8.75 for these packets, eager to host their friends for an authentic Caribbean meal and bore them with vacation photos upon their return. The demand for the packets is normally distributed, with a mean of 2500 packets and a standard deviation of 600.
-If each Jerk Store location is acting independently, what is their expected profit if they stock an optimal quantity?

Accepted Answer

A)  $13,521 
B)  $13,840 
C)  $16,680 
D)  $16,789 
A)  $13,521 
B)  $13,840 
C)  $16,680 
D)  $16,789

Question 17

Scenario 15.1 - The Jerk Store
George takes an eclectic mix of spices to make his authentic jerk seasoning as a rub for chicken, pork, and fish. The ingredients and packaging cost $1.50 and he sells the packets by the case to Jerk Stores in the Caribbean for $2.50 per packet. Tourists to the islands gladly pay $8.75 for these packets, eager to host their friends for an authentic Caribbean meal and bore them with vacation photos upon their return. The demand for the packets is normally distributed, with a mean of 2500 packets and a standard deviation of 600.
-If each Jerk Store location is acting independently, how many packets of seasoning should they stock?

Accepted Answer

A)  2840 
B)  3069 
C)  3233 
D)  3678 
A)  2840 
B)  3069 
C)  3233 
D)  3678

Question 18

The procurement process for both direct and indirect materials should work on

Accepted Answer

A)  improving coordination and visibility with the supplier. 
B)  decreasing the transaction cost for each order. 
C)  consolidation of orders to take advantage of economies of scale and quantity discounts. 
D)  minimizing communication with the supplier. 
A)  improving coordination and visibility with the supplier. 
B)  decreasing the transaction cost for each order. 
C)  consolidation of orders to take advantage of economies of scale and quantity discounts. 
D)  minimizing communication with the supplier.

Question 19

The process by which companies acquire raw materials, components, products, services, and other resources from suppliers to execute their operations is

Accepted Answer

A)  procurement. 
B)  sourcing. 
C)  supplier scoring and assessment. 
D)  supplier selection. 
A)  procurement. 
B)  sourcing. 
C)  supplier scoring and assessment. 
D)  supplier selection.

Question 20

A contract that allows a retailer to return unsold inventory up to a specified amount, at an agreed upon price is a

Accepted Answer

A)  buyback or returns contract. 
B)  revenue-sharing contract. 
C)  quantity flexibility contract. 
D)  quantity discount contract. 
A)  buyback or returns contract. 
B)  revenue-sharing contract. 
C)  quantity flexibility contract. 
D)  quantity discount contract.

Supplier performance must be rated on many different factors because

A contract that allows the buyer to modify the order (within limits agreed to by the supplier) as demand visibility increases closer to the point of sale is a

A contract where the buyer pays a minimal amount for each unit purchased from the supplier but shares a fraction of the revenue for each unit sold is a

Using a third party requires a firm to share demand information and in some cases intellectual property. This risk would be described as

Two-part tariffs and threshold contracts can be used to counter double marginalization and increase agent effort in a supply chain.

A third party increases the supply chain surplus if it aggregates the sourcing for many small players and facilitates economies of scale in ordering, inbound transportation and production. This is called

An third party may increase the supply chain surplus by aggregating warehousing needs over several firms. This is called

The selection of suppliers, design of supplier contracts, product design collaboration, procurement of material, and evaluation of supplier performance are a part of

A contract that decreases overall costs but leads to higher lot sizes and thus higher levels of inventory in the supply chain is a

The procurement process for indirect materials should focus on decreasing the transaction cost for each order.

As the replenishment lead time from a supplier grows, the amount of safety inventory that needs to be held by the buyer also grows in direct proportion to the replenishment lead time.

As the replenishment lot size grows, the cycle inventory at the firm grows, thus increasing the cost of holding inventory.

To improve overall profits, the supplier must design a contract that requires the buyer to share in some of the supplier's demand uncertainty.

The procurement process for both direct and indirect materials should work on

The process by which companies acquire raw materials, components, products, services, and other resources from suppliers to execute their operations is

A contract that allows a retailer to return unsold inventory up to a specified amount, at an agreed upon price is a

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

Supplier performance must be rated on many different factors because

A contract that allows the buyer to modify the order (within limits agreed to by the supplier) as demand visibility increases closer to the point of sale is a

A contract where the buyer pays a minimal amount for each unit purchased from the supplier but shares a fraction of the revenue for each unit sold is a

Using a third party requires a firm to share demand information and in some cases intellectual property. This risk would be described as

Two-part tariffs and threshold contracts can be used to counter double marginalization and increase agent effort in a supply chain.

A third party increases the supply chain surplus if it aggregates the sourcing for many small players and facilitates economies of scale in ordering, inbound transportation and production. This is called

An third party may increase the supply chain surplus by aggregating warehousing needs over several firms. This is called

The selection of suppliers, design of supplier contracts, product design collaboration, procurement of material, and evaluation of supplier performance are a part of

A contract that decreases overall costs but leads to higher lot sizes and thus higher levels of inventory in the supply chain is a

The procurement process for indirect materials should focus on decreasing the transaction cost for each order.

As the replenishment lead time from a supplier grows, the amount of safety inventory that needs to be held by the buyer also grows in direct proportion to the replenishment lead time.

As the replenishment lot size grows, the cycle inventory at the firm grows, thus increasing the cost of holding inventory.

To improve overall profits, the supplier must design a contract that requires the buyer to share in some of the supplier's demand uncertainty.

The procurement process for both direct and indirect materials should work on

The process by which companies acquire raw materials, components, products, services, and other resources from suppliers to execute their operations is

A contract that allows a retailer to return unsold inventory up to a specified amount, at an agreed upon price is a

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