Question 1

Design collaboration ensures that any design changes are communicated effectively to all parties involved with designing and manufacturing the product.

Accepted Answer

A) True 
 B)False

Question 2

The goal of procurement 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 3

An intermediary can increase the supply chain surplus by aggregating inventories across large numbers of customers.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 4

Sales efforts tend to peak close to the end of an evaluation period.

Accepted Answer

A) True 
 B)False

Question 5

What factors should be considered when making sourcing decisions?

Accepted Answer

When designing a sourcing strategy,it is

Question 6

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 7

Figure 15-1
  
-Use Figure 15-1 to answer the question.The buyer-supplier relationship should be long term 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 8

Good design collaboration for manufacturability and supply chain can

Accepted Answer

A) reduce product cost. 
B) increase required inventories. 
C) increase transportation cost. 
D) decrease manufacturability. 
A) reduce product cost. 
B) increase required inventories. 
C) increase transportation cost. 
D) decrease manufacturability.

Question 9

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 understock quantity if they order the optimal quantity?

Accepted Answer

A) 2 
B) 4 
C) 6 
D) 8 
A) 2 
B) 4 
C) 6 
D) 8

Question 10

A good supplier scoring and assessment process will only track performance along the price dimension when evaluating a supplier.

Accepted Answer

A) True 
 B)False

Question 11

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 12

For critical items,it is most important to ensure that they are available.

Accepted Answer

A) True 
 B)False

Question 13

Concentrating risk at one stage of the supply chain increases overall supply chain profits if the supply chain margin is divided between the two parties and each makes its decisions concerning only its own margin.

Accepted Answer

A) True 
 B)False

Question 14

An intermediary can increase the supply chain surplus by decreasing the number of relationships required between multiple buyers and sellers.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 15

The decision to move a production facility outside of domestic boundaries and still maintain ownership is called

Accepted Answer

A) insourcing. 
B) outsourcing. 
C) offshoring. 
D) onshoring. 
A) insourcing. 
B) outsourcing. 
C) offshoring. 
D) onshoring.

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 order the 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

The entire set of business processes required to purchase goods and services 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 18

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 19

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 20

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 understoc

Design collaboration ensures that any design changes are communicated effectively to all parties involved with designing and manufacturing the product.

The goal of procurement is

An intermediary can increase the supply chain surplus by aggregating inventories across large numbers of customers.This is called

Sales efforts tend to peak close to the end of an evaluation period.

What factors should be considered when making sourcing decisions?

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.

Figure 15-1 -Use Figure 15-1 to answer the question.The buyer-supplier relationship should be long term for

Good design collaboration for manufacturability and supply chain can

A good supplier scoring and assessment process will only track performance along the price dimension when evaluating a supplier.

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

For critical items,it is most important to ensure that they are available.

Concentrating risk at one stage of the supply chain increases overall supply chain profits if the supply chain margin is divided between the two parties and each makes its decisions concerning only its own margin.

An intermediary can increase the supply chain surplus by decreasing the number of relationships required between multiple buyers and sellers.This is called

The decision to move a production facility outside of domestic boundaries and still maintain ownership is called

The entire set of business processes required to purchase goods and services is

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

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

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?

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

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Exam 15: Sourcing Decisions in a Supply Chain

Design collaboration ensures that any design changes are communicated effectively to all parties involved with designing and manufacturing the product.

The goal of procurement is

An intermediary can increase the supply chain surplus by aggregating inventories across large numbers of customers.This is called

Sales efforts tend to peak close to the end of an evaluation period.

What factors should be considered when making sourcing decisions?

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.

Figure 15-1 -Use Figure 15-1 to answer the question.The buyer-supplier relationship should be long term for

Good design collaboration for manufacturability and supply chain can

A good supplier scoring and assessment process will only track performance along the price dimension when evaluating a supplier.

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

For critical items,it is most important to ensure that they are available.

Concentrating risk at one stage of the supply chain increases overall supply chain profits if the supply chain margin is divided between the two parties and each makes its decisions concerning only its own margin.

An intermediary can increase the supply chain surplus by decreasing the number of relationships required between multiple buyers and sellers.This is called

The decision to move a production facility outside of domestic boundaries and still maintain ownership is called

The entire set of business processes required to purchase goods and services is

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

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

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?

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