Question 1

The hockey stick phenomenon may be mitigated by offering threshold incentives over a rolling time horizon.

Accepted Answer

A) True 
 B)False

Question 2

Scenario 15.2 - The Hilltop
Gregory and his followers scavenge the countryside for anything of value and with minimal investment,make it ready to provide for any customer visiting their compound.Their average investment in a product is $3,and one popular product,body armor,is in high demand.Residents of The Kingdom and Alexandria in particular,are eager to procure The Hilltop's body armor for $65 and sell it to anyone left in the world at an average price of $650.The demand for the body armor is normally distributed,with a mean of 250 units and a standard deviation of 50.
-If The Kingdom and Alexandria are acting independently,what is their expected overstock quantity if they order the optimal quantity?

Accepted Answer

A) 35 
B) 42 
C) 54 
D) 66 
A) 35 
B) 42 
C) 54 
D) 66

Question 3

The role of sourcing planning and analysis is

Accepted Answer

A) to analyze spending across various suppliers and component categories to identify opportunities for decreasing the total cost. 
B) to analyze spending across various suppliers and component categories to identify opportunities for increasing the total cost. 
C) to enable orders to be placed and delivered on schedule at the lowest possible overall cost. 
D) to enable orders to be placed and delivered on schedule regardless of cost. 
A) to analyze spending across various suppliers and component categories to identify opportunities for decreasing the total cost. 
B) to analyze spending across various suppliers and component categories to identify opportunities for increasing the total cost. 
C) to enable orders to be placed and delivered on schedule at the lowest possible overall cost. 
D) to enable orders to be placed and delivered on schedule regardless of cost.

Question 4

A production material that lies on the high end of the value/cost scale and the low end of the criticality scale is categorized as a general item.

Accepted Answer

A) True 
 B)False

Question 5

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.

Question 6

Why should replenishment lead time be considered in supplier selection decisions?

Accepted Answer

As the replenishment lead time from a su

Question 7

Figure 15-1
  
-Use Figure 15-1 to answer the question.Most indirect materials are included in

Accepted Answer

A) General items. 
B) Critical items. 
C) Strategic items. 
D) Bulk purchase items. 
A) General items. 
B) Critical items. 
C) Strategic items. 
D) Bulk purchase items.

Question 8

Why should design collaboration capability be considered in supplier selection decisions?

Accepted Answer

Given that a large part of product cost

Question 9

Effective sourcing processes within a firm can

Accepted Answer

A) improve profits for the firm and total supply chain surplus. 
B) reduce profits for the firm and total supply chain surplus. 
C) reduce total supply chain surplus. 
D) reduce profits for the firm. 
A) improve profits for the firm and total supply chain surplus. 
B) reduce profits for the firm and total supply chain surplus. 
C) reduce total supply chain surplus. 
D) reduce profits for the firm.

Question 10

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 order?

Accepted Answer

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

Question 11

Figure 15-1
  
-Use Figure 15-1 to answer the question.The goal should be to find suppliers that can collaborate in the design phase for

Accepted Answer

A) General items. 
B) Critical items. 
C) Strategic items. 
D) Bulk purchase items. 
A) General items. 
B) Critical items. 
C) Strategic items. 
D) Bulk purchase items.

Question 12

A 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 13

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 14

A reliable supplier has low variability of lead time,whereas an unreliable supplier has high variability.

Accepted Answer

A) True 
 B)False

Question 15

W.W.Grainger and McMaster Carr stock products from more than a thousand manufacturers each to sell to hundreds of thousands of customers and are sterling examples of

Accepted Answer

A) transportation aggregation by transportation intermediaries. 
B) inventory aggregation. 
C) warehouse aggregation. 
D) transportation aggregation by storage intermediaries. 
A) transportation aggregation by transportation intermediaries. 
B) inventory aggregation. 
C) warehouse aggregation. 
D) transportation aggregation by storage intermediaries.

Question 16

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 17

Price has traditionally been the only dimension that suppliers have been compared on during the process 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 18

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 optimal quantity for the Jerk Store to order?

Accepted Answer

A) 2633 
B) 2840 
C) 3069 
D) 3267 
A) 2633 
B) 2840 
C) 3069 
D) 3267

Question 19

Scenario 15.2 - The Hilltop
Gregory and his followers scavenge the countryside for anything of value and with minimal investment,make it ready to provide for any customer visiting their compound.Their average investment in a product is $3,and one popular product,body armor,is in high demand.Residents of The Kingdom and Alexandria in particular,are eager to procure The Hilltop's body armor for $65 and sell it to anyone left in the world at an average price of $650.The demand for the body armor is normally distributed,with a mean of 250 units and a standard deviation of 50.
-If Gregory and a single retailer - say Alexandria - act as a vertically integrated supply chain,what is their expected understock quantity if Alexandria orders optimally?

Accepted Answer

A) 0 
B) 6 
C) 12 
D) 18 
A) 0 
B) 6 
C) 12 
D) 18

Question 20

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.

The hockey stick phenomenon may be mitigated by offering threshold incentives over a rolling time horizon.

The role of sourcing planning and analysis is

A production material that lies on the high end of the value/cost scale and the low end of the criticality scale is categorized as a general item.

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

Why should replenishment lead time be considered in supplier selection decisions?

Figure 15-1 -Use Figure 15-1 to answer the question.Most indirect materials are included in

Why should design collaboration capability be considered in supplier selection decisions?

Effective sourcing processes within a firm can

Figure 15-1 -Use Figure 15-1 to answer the question.The goal should be to find suppliers that can collaborate in the design phase for

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

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

A reliable supplier has low variability of lead time,whereas an unreliable supplier has high variability.

W.W.Grainger and McMaster Carr stock products from more than a thousand manufacturers each to sell to hundreds of thousands of customers and are sterling examples of

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

Price has traditionally been the only dimension that suppliers have been compared on during the process of

Quantity discounts lower the unit cost

Understanding the Supply Chain

Achieving Strategic Fit in a Supply Chain

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

Coordination in a Supply Chain

Managing Economies of Scale in a Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Linking Product Availability to Profits

Transportation in a Supply Chain

Pricing and Revenue Management in a Supply Chain

Sustainability and the Supply Chain

Filters

Exam 15: Sourcing Decisions in a Supply Chain

The hockey stick phenomenon may be mitigated by offering threshold incentives over a rolling time horizon.

The role of sourcing planning and analysis is

A production material that lies on the high end of the value/cost scale and the low end of the criticality scale is categorized as a general item.

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

Why should replenishment lead time be considered in supplier selection decisions?

Figure 15-1 -Use Figure 15-1 to answer the question.Most indirect materials are included in

Why should design collaboration capability be considered in supplier selection decisions?

Effective sourcing processes within a firm can

Figure 15-1 -Use Figure 15-1 to answer the question.The goal should be to find suppliers that can collaborate in the design phase for

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

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

A reliable supplier has low variability of lead time,whereas an unreliable supplier has high variability.

W.W.Grainger and McMaster Carr stock products from more than a thousand manufacturers each to sell to hundreds of thousands of customers and are sterling examples of

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

Price has traditionally been the only dimension that suppliers have been compared on during the process of

Quantity discounts lower the unit cost

Understanding the Supply Chain

Achieving Strategic Fit in a Supply Chain

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

Coordination in a Supply Chain

Managing Economies of Scale in a Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Linking Product Availability to Profits

Transportation in a Supply Chain

Pricing and Revenue Management in a Supply Chain

Sustainability and the Supply Chain

Filters