Question 1

Which of the following best describes vertical integration?

Accepted Answer

A) sell products to a supplier or a distributor 
B) develop the ability to produce products that complement the original product 
C) produce goods or services previously purchased 
D) develop the ability to produce the specified good more efficiently than before 
E) build long-term partnerships with a few suppliers 
A) sell products to a supplier or a distributor 
B) develop the ability to produce products that complement the original product 
C) produce goods or services previously purchased 
D) develop the ability to produce the specified good more efficiently than before 
E) build long-term partnerships with a few suppliers

Question 2

In supply chain management,ethical issues:

Accepted Answer

A) are particularly important because of the enormous opportunities for abuse. 
B) may be guided by company rules and codes of conduct. 
C) become more complex the more global is the supply chain. 
D) may be guided by the principles and standards of the Institute for Supply Management. 
E) All of the above are true. 
A) are particularly important because of the enormous opportunities for abuse. 
B) may be guided by company rules and codes of conduct. 
C) become more complex the more global is the supply chain. 
D) may be guided by the principles and standards of the Institute for Supply Management. 
E) All of the above are true.

Question 3

Outsourcing refers to transferring a firm's activities that have traditionally been internal to external suppliers.

Accepted Answer

A) True 
 B)False

Question 4

Drop shipping:

Accepted Answer

A) is equivalent to cross-docking. 
B) is the opposite of a blanket order. 
C) means the supplier will ship directly to the end consumer,rather than to the seller. 
D) is the same thing as keiretsu. 
E) is a good reason to find a new firm to ship your products. 
A) is equivalent to cross-docking. 
B) is the opposite of a blanket order. 
C) means the supplier will ship directly to the end consumer,rather than to the seller. 
D) is the same thing as keiretsu. 
E) is a good reason to find a new firm to ship your products.

Question 5

A fried chicken fast-food chain that acquired feed mills and poultry farms has performed which of the following?

Accepted Answer

A) horizontal integration 
B) forward integration 
C) backward integration 
D) current transformation 
E) job expansion 
A) horizontal integration 
B) forward integration 
C) backward integration 
D) current transformation 
E) job expansion

Question 6

Which of the following is NOT an advantage of the "few suppliers" sourcing strategy?

Accepted Answer

A) suppliers have a learning curve that yields lower transaction and production costs 
B) suppliers are more likely to understand the broad objectives of the end customer 
C) less vulnerable trade secrets 
D) creation of value by allowing suppliers to have economies of scale 
E) suppliers' willingness to provide technological expertise 
A) suppliers have a learning curve that yields lower transaction and production costs 
B) suppliers are more likely to understand the broad objectives of the end customer 
C) less vulnerable trade secrets 
D) creation of value by allowing suppliers to have economies of scale 
E) suppliers' willingness to provide technological expertise

Question 7

Warehouses sometimes perform certain other functions besides storing goods.Which of the following is NOT typically one of those functions?

Accepted Answer

A) purchasing 
B) postponement 
C) break-bulk activities 
D) consolidation point 
E) cross-docking 
A) purchasing 
B) postponement 
C) break-bulk activities 
D) consolidation point 
E) cross-docking

Question 8

What is the trucking industry doing to improve efficiency?

Accepted Answer

Trucking firms are using computers to mo

Question 9

Even though a firm may have a low cost strategy,supply-chain strategy can select suppliers primarily on response or differentiation.

Accepted Answer

A) True 
 B)False

Question 10

One classic type of negotiation strategy is the market-based price model.

Accepted Answer

A) True 
 B)False

Question 11

A disadvantage of the "few suppliers" sourcing strategy is:

Accepted Answer

A) the risk of not being ready for technological change. 
B) the lack of cost savings for customers and suppliers. 
C) possible violations of the Sherman Antitrust Act. 
D) the high cost of changing partners. 
E) the suppliers are less likely to understand the broad objectives of the procuring firm and the end customer. 
A) the risk of not being ready for technological change. 
B) the lack of cost savings for customers and suppliers. 
C) possible violations of the Sherman Antitrust Act. 
D) the high cost of changing partners. 
E) the suppliers are less likely to understand the broad objectives of the procuring firm and the end customer.

Question 12

Which one of the following is NOT one of the six sourcing strategies?

Accepted Answer

A) negotiation with many suppliers 
B) vertical integration 
C) keiretsu 
D) short-term relationships with few suppliers 
E) virtual companies 
A) negotiation with many suppliers 
B) vertical integration 
C) keiretsu 
D) short-term relationships with few suppliers 
E) virtual companies

Question 13

Japanese manufacturers often pursue a strategy that is part collaboration,part purchasing from a few suppliers,and part vertical integration.What is this approach called?

Accepted Answer

A) kanban 
B) keiretsu 
C) samurai 
D) poka-yoke 
E) kaizen 
A) kanban 
B) keiretsu 
C) samurai 
D) poka-yoke 
E) kaizen

Question 14

The supply chain management opportunity called postponement involves delaying deliveries to avoid accumulation of inventory at the customer's site.

Accepted Answer

A) True 
 B)False

Question 15

Which one of the following distribution systems offers speed and reliability when emergency supplies are needed overseas?

Accepted Answer

A) trucking 
B) railroads 
C) airfreight 
D) waterways 
E) pipelines 
A) trucking 
B) railroads 
C) airfreight 
D) waterways 
E) pipelines

Question 16

Identify the ten opportunities in managing the integrated supply chain.

Accepted Answer

(1)accurate "pull" data; (2)lot size red

Question 17

Keiretsu refers to a company coalition that is part collaboration,part purchasing from many suppliers,and part vertical integration.

Accepted Answer

A) True 
 B)False

Question 18

As the number of facilities increases,total logistics costs tend to follow a curve that first rises,then declines.

Accepted Answer

A) True 
 B)False

Question 19

Local optimization is a supply-chain complication best described as:

Accepted Answer

A) optimizing one's local area without full knowledge of supply chain needs. 
B) obtaining very high production efficiency in a decentralized supply chain. 
C) the prerequisite of global optimization. 
D) the result of supply chains built on suppliers with compatible corporate cultures. 
E) the opposite of the bullwhip effect. 
A) optimizing one's local area without full knowledge of supply chain needs. 
B) obtaining very high production efficiency in a decentralized supply chain. 
C) the prerequisite of global optimization. 
D) the result of supply chains built on suppliers with compatible corporate cultures. 
E) the opposite of the bullwhip effect.

Question 20

For which corporate strategy(ies)should supply chain inventory be minimized?

Accepted Answer

A) low cost 
B) response 
C) differentiation 
D) low cost and response 
E) low cost and differentiation 
A) low cost 
B) response 
C) differentiation 
D) low cost and response 
E) low cost and differentiation

Exam 12: Supply Chain Management

Which of the following best describes vertical integration?

In supply chain management,ethical issues:

Outsourcing refers to transferring a firm's activities that have traditionally been internal to external suppliers.

Drop shipping:

A fried chicken fast-food chain that acquired feed mills and poultry farms has performed which of the following?

Which of the following is NOT an advantage of the "few suppliers" sourcing strategy?

Warehouses sometimes perform certain other functions besides storing goods.Which of the following is NOT typically one of those functions?

What is the trucking industry doing to improve efficiency?

Even though a firm may have a low cost strategy,supply-chain strategy can select suppliers primarily on response or differentiation.

One classic type of negotiation strategy is the market-based price model.

A disadvantage of the "few suppliers" sourcing strategy is:

Which one of the following is NOT one of the six sourcing strategies?

Japanese manufacturers often pursue a strategy that is part collaboration,part purchasing from a few suppliers,and part vertical integration.What is this approach called?

The supply chain management opportunity called postponement involves delaying deliveries to avoid accumulation of inventory at the customer's site.

Which one of the following distribution systems offers speed and reliability when emergency supplies are needed overseas?

Identify the ten opportunities in managing the integrated supply chain.

Keiretsu refers to a company coalition that is part collaboration,part purchasing from many suppliers,and part vertical integration.

As the number of facilities increases,total logistics costs tend to follow a curve that first rises,then declines.

Local optimization is a supply-chain complication best described as:

For which corporate strategy(ies)should supply chain inventory be minimized?

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Process Strategy

Capacity and Constraint Management

Location Strategies

Layout Strategies

Human Resources, job Design, and Work Measurement

Inventory Management

Aggregate Planning and Sop

Material Requirements Planning Mrpand Erp

Short-Term Scheduling

Jit, tps, and Lean Operations

Maintenance and Reliability

Sustainability in the Supply Chain

Statistical Process Control

Supply Chain Management Analytics

Decision-Making Tools

Linear Programming

Transportation Models

Waiting-Line Models

Learning Curves

Simulation

Filters