Question 1

Functional products include staples that people buy in a wide range of retail outlets, such as grocery stores and gas stations.

Accepted Answer

A) True 
 B)False

Question 2

Which is the most challenging kind of supply chain to manage according to Hau Lee?

Accepted Answer

A) Agile supply chain 
B) Efficient supply chain 
C) Risk-hedging supply chain 
D) Erratic supply chain 
E) Responsive supply chain 
A) Agile supply chain 
B) Efficient supply chain 
C) Risk-hedging supply chain 
D) Erratic supply chain 
E) Responsive supply chain

Question 3

In Hau Lee's uncertainty framework to classify supply chains, a supply chain for innovative products with an evolving supply process is called which of the following?

Accepted Answer

A) Efficient 
B) Forward looking 
C) Agile 
D) Risk hedging 
E) Responsive 
A) Efficient 
B) Forward looking 
C) Agile 
D) Risk hedging 
E) Responsive

Question 4

Green sourcing requires incorporating new criteria for evaluating alternatives.

Accepted Answer

A) True 
 B)False

Question 5

If inventory turnover is 20 and cost of goods sold is $100,000, what is the average aggregate inventory value? _______________________

Accepted Answer

$5,000
Explanation: Manipulati

Question 6

Inventory turn values that are considered good differ by industry and the type of products being handled.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not an improvement-driven reason to outsource?

Accepted Answer

A) Improve risk management. 
B) Increase commitment in a noncore area. 
C) Shorten cycle time. 
D) Improve quality and productivity. 
E) Obtain expertise, skills, and technologies that are otherwise not available. 
A) Improve risk management. 
B) Increase commitment in a noncore area. 
C) Shorten cycle time. 
D) Improve quality and productivity. 
E) Obtain expertise, skills, and technologies that are otherwise not available.

Question 8

If the average aggregate inventory value is $1,200,000 and the cost of goods sold is $600,000, which of the following is inventory turnover?

Accepted Answer

A) 60 
B) 10.4 
C) 2 
D) 0.5 
E) None of these 
A) 60 
B) 10.4 
C) 2 
D) 0.5 
E) None of these

Question 9

Overemphasis on purchase price frequently results in failure to address other significant costs.

Accepted Answer

A) True 
 B)False

Question 10

An estimate of the cost of an item that includes all the costs related to the procurement and use of an item, including any related costs in disposing of the item after it is no longer useful, is called what? _____________________.

Accepted Answer

total cost of ownership
Explanation: The

Question 11

Ownership costs are incurred after the initial purchase and are associated with the ongoing use of the product or material.Which of the following is not an ownership cost listed in the text?

Accepted Answer

A) Financing costs 
B) Energy costs 
C) Taxes 
D) Maintenance and repair costs 
E) Supply network costs 
A) Financing costs 
B) Energy costs 
C) Taxes 
D) Maintenance and repair costs 
E) Supply network costs

Question 12

A financially driven reason for outsourcing is that it can reduce costs through a lower cost structure.

Accepted Answer

A) True 
 B)False

Question 13

The inventory turnover ratio used in measuring supply chain efficiency is found by the ratio of which of the following?

Accepted Answer

A) Cost of goods sold/Average aggregate inventory value 
B) Fixed costs/Variable costs 
C) Sales costs/Marketing costs 
D) Cost of goods sold/Cost to sell goods 
E) Operations flow costs/Supplier flow costs 
A) Cost of goods sold/Average aggregate inventory value 
B) Fixed costs/Variable costs 
C) Sales costs/Marketing costs 
D) Cost of goods sold/Cost to sell goods 
E) Operations flow costs/Supplier flow costs

Question 14

What is the effect of the lack of synchronization among supply chain members called? ________________________

Accepted Answer

the bullwhip effect
Explanatio

Question 15

Name the four types of supply chain in Hau Lee's uncertainty framework for classifying supply chains.(1) ________________________
(2) ________________________
(3) ________________________
(4) ________________________

Accepted Answer

(1 efficient.(2 resp

Question 16

In outsourcing, which of the following internal activities and decision responsibilities cannot be transferred to outside contractors?

Accepted Answer

A) Activities involving people 
B) Activities involving facilities 
C) Activities involving equipment 
D) Activities involving shareholders 
E) Activities involving technology 
A) Activities involving people 
B) Activities involving facilities 
C) Activities involving equipment 
D) Activities involving shareholders 
E) Activities involving technology

Question 17

A financially driven reason for outsourcing is that it can help gain access to new markets, especially in developing countries.

Accepted Answer

A) True 
 B)False

Question 18

A firm that controls most of the activities in its supply chain is said to be vertically integrated.

Accepted Answer

A) True 
 B)False

Exam 16: Global Sourcing and Procurement

Functional products include staples that people buy in a wide range of retail outlets, such as grocery stores and gas stations.

Which is the most challenging kind of supply chain to manage according to Hau Lee?

In Hau Lee's uncertainty framework to classify supply chains, a supply chain for innovative products with an evolving supply process is called which of the following?

Green sourcing requires incorporating new criteria for evaluating alternatives.

If inventory turnover is 20 and cost of goods sold is $100,000, what is the average aggregate inventory value? _______________________

Inventory turn values that are considered good differ by industry and the type of products being handled.

Which of the following is not an improvement-driven reason to outsource?

If the average aggregate inventory value is $1,200,000 and the cost of goods sold is $600,000, which of the following is inventory turnover?

Overemphasis on purchase price frequently results in failure to address other significant costs.

An estimate of the cost of an item that includes all the costs related to the procurement and use of an item, including any related costs in disposing of the item after it is no longer useful, is called what? _____________________.

Ownership costs are incurred after the initial purchase and are associated with the ongoing use of the product or material.Which of the following is not an ownership cost listed in the text?

A financially driven reason for outsourcing is that it can reduce costs through a lower cost structure.

The inventory turnover ratio used in measuring supply chain efficiency is found by the ratio of which of the following?

What is the effect of the lack of synchronization among supply chain members called? ________________________

Name the four types of supply chain in Hau Lee's uncertainty framework for classifying supply chains.(1) ________________________ (2) ________________________ (3) ________________________ (4) ________________________

In outsourcing, which of the following internal activities and decision responsibilities cannot be transferred to outside contractors?

A financially driven reason for outsourcing is that it can help gain access to new markets, especially in developing countries.

A firm that controls most of the activities in its supply chain is said to be vertically integrated.

Introduction

Strategy

Design of Products and Services

Project Management

Strategic Capacity Management

Learning Curves

Manufacturing Processes

Facility Layout

Service Processes

Waiting Line Analysis and Simulation

Process Design and Analysis

Six Sigma Quality

Statistical Quality Control

Lean Supply Chains

Logistics Distribution, and Transportation

Enterprise Resource Planning Systems

Forecasting

Sales and Operations Planning

Inventory Management

Material Requirements Planning

Workcenter Scheduling

Theory of Constraints

Health Care

Operations Consulting

Filters

Name the four types of supply chain in Hau Lee's uncertainty framework for classifying supply chains.(1) (2) (3) (4)