Question 1

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 2

Other things remaining the same, if the cost of goods sold decreases, then

Accepted Answer

A) Inventory turnover ratio and weeks of supply will both go up. 
B) Inventory turnover ratio will go down, but the weeks of supply will go up. 
C) Inventory turnover ratio and weeks of supply will both go down. 
D) Inventory turnover ratio will go up, but weeks of supply will go down. 
E) Inventory turnover ratio will stay the same, but weeks of supply will go down. 
A) Inventory turnover ratio and weeks of supply will both go up. 
B) Inventory turnover ratio will go down, but the weeks of supply will go up. 
C) Inventory turnover ratio and weeks of supply will both go down. 
D) Inventory turnover ratio will go up, but weeks of supply will go down. 
E) Inventory turnover ratio will stay the same, but weeks of supply will go down.

Question 3

Which of the following is not an improvement-driven reason for outsourcing?

Accepted Answer

A) Improve quality and productivity. 
B) Enhance effectiveness by focusing on what you do best. 
C) Improve risk management. 
D) Obtain expertise, skills, and technologies not otherwise available. 
E) Improve credibility and image by associating with superior providers. 
A) Improve quality and productivity. 
B) Enhance effectiveness by focusing on what you do best. 
C) Improve risk management. 
D) Obtain expertise, skills, and technologies not otherwise available. 
E) Improve credibility and image by associating with superior providers.

Question 4

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 5

Two common measures to evaluate supply chain efficiency are the inventory turnover and weeks-of-supply ratios.

Accepted Answer

A) True 
 B)False

Question 6

Firms producing functional products are forced to introduce a steady stream of innovations in order to survive.

Accepted Answer

A) True 
 B)False

Question 7

A stable supply process is one where product volumes are high, demand is predictable, and there is a long product life.

Accepted Answer

A) True 
 B)False

Question 8

Ownership costs include which of the following costs?

Accepted Answer

A) Environmental costs 
B) Warranty costs 
C) Supply chain costs 
D) Quality costs 
E) Taxes 
A) Environmental costs 
B) Warranty costs 
C) Supply chain costs 
D) Quality costs 
E) Taxes

Question 9

The optimal strategy for innovative products is to use an efficient supply chain.

Accepted Answer

A) True 
 B)False

Question 10

The effect of the lack of synchronization among supply chain members is referred to as which of the following?

Accepted Answer

A) Forward buying 
B) Continuous replenishment 
C) Bullwhip effect 
D) Metcalf's law 
E) Being out of step 
A) Forward buying 
B) Continuous replenishment 
C) Bullwhip effect 
D) Metcalf's law 
E) Being out of step

Question 11

Inventory turnover and weeks of supply are mathematically the inverse of one another.

Accepted Answer

A) True 
 B)False

Question 12

An improvement-driven reason for outsourcing is that it can increase product and service value, customer satisfaction, and shareholder value.

Accepted Answer

A) True 
 B)False

Question 13

The best strategy for innovative products is to use either a responsive or an agile supply chain.

Accepted Answer

A) True 
 B)False

Question 14

Outsourcing allows a firm to achieve an improved focus on its core competencies.

Accepted Answer

A) True 
 B)False

Question 15

In Hau Lee's uncertainty framework to classify supply chains, a supply chain for functional products with a stable 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 16

If the average aggregate inventory value is $45,000 and the cost of goods sold is $10,000, which of the following is weeks of supply?

Accepted Answer

A) 45,000 
B) 234 
C) 120 
D) 23.4 
E) 4.5 
A) 45,000 
B) 234 
C) 120 
D) 23.4 
E) 4.5

Question 17

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 18

The total cost of ownership (TCO) can be categorized into three areas: acquisition costs, ownership costs, and post-ownership costs.

Accepted Answer

A) True 
 B)False

Question 19

Green sourcing requires incorporating new criteria for evaluating alternatives.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 16: Global Sourcing and Procurement

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

Other things remaining the same, if the cost of goods sold decreases, then

Which of the following is not an improvement-driven reason for outsourcing?

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?

Two common measures to evaluate supply chain efficiency are the inventory turnover and weeks-of-supply ratios.

Firms producing functional products are forced to introduce a steady stream of innovations in order to survive.

A stable supply process is one where product volumes are high, demand is predictable, and there is a long product life.

Ownership costs include which of the following costs?

The optimal strategy for innovative products is to use an efficient supply chain.

The effect of the lack of synchronization among supply chain members is referred to as which of the following?

Inventory turnover and weeks of supply are mathematically the inverse of one another.

An improvement-driven reason for outsourcing is that it can increase product and service value, customer satisfaction, and shareholder value.

The best strategy for innovative products is to use either a responsive or an agile supply chain.

Outsourcing allows a firm to achieve an improved focus on its core competencies.

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

If the average aggregate inventory value is $45,000 and the cost of goods sold is $10,000, which of the following is weeks of supply?

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?

The total cost of ownership (TCO) can be categorized into three areas: acquisition costs, ownership costs, and post-ownership costs.

Green sourcing requires incorporating new criteria for evaluating alternatives.

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

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