Question 1

Drop shipping results in time and shipping cost savings.

Accepted Answer

A) True 
 B)False

Question 2

Which one of the following performance measures is not true of a world class firm?

Accepted Answer

A)  short time placing an order 
B)  high percentage of accepted material 
C)  large lead time 
D)  high percentage of on-time deliveries 
E)  low number of shortages per year 
A)  short time placing an order 
B)  high percentage of accepted material 
C)  large lead time 
D)  high percentage of on-time deliveries 
E)  low number of shortages per year

Question 3

An advantage of a joint venture over vertical integration is

Accepted Answer

A)  reduced risk 
B)  reduced costs 
C)  compromised competitive advantages 
D)  globalization 
E)  flexibility 
A)  reduced risk 
B)  reduced costs 
C)  compromised competitive advantages 
D)  globalization 
E)  flexibility

Question 4

The following data are pulled from a recent Walsh Manufacturing annual report.
 $\begin{array} { l r }\underline{\text { Assets}}\
 \text { Raw material inventory } & \$ 120,000 \ \text { Work-in-process inventory } & \$ 50,000 \ \text { Finished goods inventory } & \$ 300,000 \ \text { Property, plant \& equipment } & \$ 500,000 \ \text { Other assets } & \underline{\$ 200,000} \ \text { Total assets } & \$ 1,170,000\\\
\underline{\text { Condensed Income Statement}}\
\text { Revenue } & \$ 2,000,000 \
\text { Cost of goods sold } & \$ 600,000 \
\text { Other expenses } &  \underline{\$ 1,000,000} \
\text { Net income } & \$ 400,000 \end{array}$

Calculate: (a) Percent invested in inventory, (b) Inventory turnover, and (c) Weeks of supply.

Accepted Answer

(a) Percent invested in inventory = (120

Question 5

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 6

Outsourcing is a form of specialization that allows the outsourcing firm to focus on its key success factors.

Accepted Answer

A) True 
 B)False

Question 7

TAL Apparel's management of its supply chain for Stafford shirts sold in JCPenney in an example of

Accepted Answer

A)  blanket orders 
B)  standardization 
C)  postponement 
D)  lot size reduction 
E)  single stage control of replenishment 
A)  blanket orders 
B)  standardization 
C)  postponement 
D)  lot size reduction 
E)  single stage control of replenishment

Question 8

Which of the following is not a concern of the supply chain?

Accepted Answer

A)  warehousing and inventory levels 
B)  credit and cash transfers 
C)  suppliers 
D)  distributors and banks 
E)  maintenance scheduling 
A)  warehousing and inventory levels 
B)  credit and cash transfers 
C)  suppliers 
D)  distributors and banks 
E)  maintenance scheduling

Question 9

Why is channel assembly popular in the personal computer industry?

Accepted Answer

Channel assembly is popular in the perso

Question 10

Keeping a product generic as long as possible before customizing is known as

Accepted Answer

A)  postponement 
B)  keiretsu 
C)  vendor-managed inventory 
D)  forward integration 
E)  backward integration 
A)  postponement 
B)  keiretsu 
C)  vendor-managed inventory 
D)  forward integration 
E)  backward integration

Question 11

E-procurement

Accepted Answer

A)  works best in long-term contract situations, and is not suited for auctions 
B)  is the same thing as Internet purchasing 
C)  represents only the auction and bidding components of Internet purchasing 
D)  is illegal in all states except Nevada and New Jersey 
E)  All of the above are true of e-procurement. 
A)  works best in long-term contract situations, and is not suited for auctions 
B)  is the same thing as Internet purchasing 
C)  represents only the auction and bidding components of Internet purchasing 
D)  is illegal in all states except Nevada and New Jersey 
E)  All of the above are true of e-procurement.

Question 12

The three stages of vendor selection, in order, are

Accepted Answer

A)  vendor evaluation, vendor development, and negotiations 
B)  vendor development, vendor evaluation, and vendor acquisition 
C)  introduction, growth, and maturity 
D)  vendor evaluation, negotiations, and vendor development 
E)  EDI, ERP, and ASN 
A)  vendor evaluation, vendor development, and negotiations 
B)  vendor development, vendor evaluation, and vendor acquisition 
C)  introduction, growth, and maturity 
D)  vendor evaluation, negotiations, and vendor development 
E)  EDI, ERP, and ASN

Question 13

A furniture maker has delivered a dining set directly to the end consumer rather than to the furniture store. The furniture maker is practicing

Accepted Answer

A)  postponement 
B)  drop shipping 
C)  channel assembly 
D)  passing the buck 
E)  float reduction 
A)  postponement 
B)  drop shipping 
C)  channel assembly 
D)  passing the buck 
E)  float reduction

Question 14

Which of the following is not an advantage of the "few suppliers" concept?

Accepted Answer

A)  suppliers' willingness to participate in JIT systems 
B)  trust 
C)  vulnerability of trade secrets 
D)  creation of value by allowing suppliers to have economies of scale 
E)  suppliers' willingness to provide technological expertise 
A)  suppliers' willingness to participate in JIT systems 
B)  trust 
C)  vulnerability of trade secrets 
D)  creation of value by allowing suppliers to have economies of scale 
E)  suppliers' willingness to provide technological expertise

Question 15

What are the advantages of shipping by truck?

Accepted Answer

The advantages of shipping by

Question 16

Identify the reasons for making in the make-or-buy decision.

Accepted Answer

The reasons for making in the make-or-bu

Question 17

A transportation firm spends 60 percent of its sales in the supply chain, and has a net profit margin of 6 percent. The company is about to invest $100,000 in one of two ventures. One venture is advertising-based, and is expected to increase revenues (sales) by $600,000 (after spending the $100,000). The other venture applies the money in supply-chain efficiencies that are expected to save $200,000 (again, after spending the $100,000). Which of these two ventures offers the larger increase in profit to the firm?
 Use Table 11.3, reproduced below.

Accepted Answer

The relevant entry in Table 11.3, 60% of

Question 18

Vendor-Managed Inventory is a form of outsourcing.

Accepted Answer

A) True 
 B)False

Question 19

Local optimization, incentives, and large lots all contribute to __________ about what is really occurring in the supply chain.

Accepted Answer

distortion

Question 20

Consider a firm with a 2007 net income of $20 million, revenue of $60 million and cost of goods sold of $25 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)  42.00 
D)  4.16 
E)  20.00 
A)  12.50 
B)  10.00 
C)  42.00 
D)  4.16 
E)  20.00

Exam 13: Supply-Chain Management

Drop shipping results in time and shipping cost savings.

Which one of the following performance measures is not true of a world class firm?

An advantage of a joint venture over vertical integration is

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

Outsourcing is a form of specialization that allows the outsourcing firm to focus on its key success factors.

TAL Apparel's management of its supply chain for Stafford shirts sold in JCPenney in an example of

Which of the following is not a concern of the supply chain?

Why is channel assembly popular in the personal computer industry?

Keeping a product generic as long as possible before customizing is known as

E-procurement

The three stages of vendor selection, in order, are

A furniture maker has delivered a dining set directly to the end consumer rather than to the furniture store. The furniture maker is practicing

Which of the following is not an advantage of the "few suppliers" concept?

What are the advantages of shipping by truck?

Identify the reasons for making in the make-or-buy decision.

Vendor-Managed Inventory is a form of outsourcing.

Local optimization, incentives, and large lots all contribute to __________ about what is really occurring in the supply chain.

Consider a firm with a 2007 net income of $20 million, revenue of $60 million and cost of goods sold of $25 million. If the balance sheet amounts show $2 million of inventory and $500,000 of property, plant & equipment, what is the inventory turnover?

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Statistical Process Control

Process Strategy

Capacity and Constraint Management

Location Strategies

Layout Strategies

Human Resources, Job Design, and Work Measurement

Outsourcing as a Supply-Chain Strategy

Inventory Management

Aggregate Planning

Material Requirements Planning MRP and ERP

Short-Term Scheduling

Just-In-Time and Lean Options

Maintenance and Reliability

Decision-Making Tools

Linear Programming

Transportation Models

Waiting-Line Models

Learning Curves

Simulation

Filters