Question 1

What three logistics-related costs are relevant when analyzing the choice of number of facilities in a distribution network?

Accepted Answer

A) inventory costs,production costs,and transportation costs 
B) inventory costs,production costs,and facility costs 
C) inventory costs,transportation costs,and facility costs 
D) facility costs,production costs,and transportation costs 
E) facility costs,inventory costs,and marketing costs 
A) inventory costs,production costs,and transportation costs 
B) inventory costs,production costs,and facility costs 
C) inventory costs,transportation costs,and facility costs 
D) facility costs,production costs,and transportation costs 
E) facility costs,inventory costs,and marketing costs

Question 2

A manufacturing plant averaged $740 of raw materials,$230 of work-in-process inventory,and $1030 of finished goods inventory during the month.If the cost of goods sold this month amounted to $10,000,what is the inventory turnover for the month?

Accepted Answer

Monthly inventory turnover = M

Question 3

In what type of auction does a buyer initiate the process by submitting a description of the desired product or service?

Accepted Answer

A) traditional 
B) buyer 
C) Dutch 
D) French 
E) Mexican 
A) traditional 
B) buyer 
C) Dutch 
D) French 
E) Mexican

Question 4

Which of the following statements does NOT accurately explain what occurs when the number of facilities in a distribution network increases?

Accepted Answer

A) response time decreases 
B) profit first increases,then decreases 
C) total logistics costs first decrease,then increase 
D) inventory costs increase 
E) response time first decreases,then increases 
A) response time decreases 
B) profit first increases,then decreases 
C) total logistics costs first decrease,then increase 
D) inventory costs increase 
E) response time first decreases,then increases

Question 5

With the "many suppliers" sourcing strategy,the order usually goes to the supplier that offers the highest quality.

Accepted Answer

A) True 
 B)False

Question 6

Identify the nine major categories of supply chain risk.

Accepted Answer

(1)supplier failure to deliver; (2)suppl

Question 7

Cross-sourcing describes the practice of having two suppliers provide every component.

Accepted Answer

A) True 
 B)False

Question 8

The Institute for Supply Management:

Accepted Answer

A) establishes laws and regulations for supply management. 
B) is an agency of the United Nations charged with promoting ethical conduct globally. 
C) publishes the principles and standards for ethical supply management conduct. 
D) prohibits backward integration into developing economies. 
E) grants Ph.D.degrees in purchasing. 
A) establishes laws and regulations for supply management. 
B) is an agency of the United Nations charged with promoting ethical conduct globally. 
C) publishes the principles and standards for ethical supply management conduct. 
D) prohibits backward integration into developing economies. 
E) grants Ph.D.degrees in purchasing.

Question 9

What are the three classic types of negotiation strategies?

Accepted Answer

A) supplier evaluation,supplier development,and supplier selection 
B) Theory X,Theory Y,and Theory Z 
C) many suppliers,few suppliers,and keiretsu 
D) cost-based price model,market-based price model,and competitive bidding 
E) traditional auctions,reverse auctions,and online exchanges 
A) supplier evaluation,supplier development,and supplier selection 
B) Theory X,Theory Y,and Theory Z 
C) many suppliers,few suppliers,and keiretsu 
D) cost-based price model,market-based price model,and competitive bidding 
E) traditional auctions,reverse auctions,and online exchanges

Question 10

Among which of the following industries are purchasing costs the LOWEST percentage of sales?

Accepted Answer

A) automobiles 
B) petroleum 
C) restaurants 
D) lumber 
E) chemicals 
A) automobiles 
B) petroleum 
C) restaurants 
D) lumber 
E) chemicals

Question 11

The transfer of some of what are traditional internal activities and resources of a firm to outside vendors is:

Accepted Answer

A) a standard use of the make-or-buy decision. 
B) not allowed by the ethics code of the Supply Management Institute. 
C) offshoring. 
D) outsourcing. 
E) keiretsu. 
A) a standard use of the make-or-buy decision. 
B) not allowed by the ethics code of the Supply Management Institute. 
C) offshoring. 
D) outsourcing. 
E) keiretsu.

Question 12

________ describes the coordination of all supply chain activities,starting with raw materials and ending with a satisfied customer.

Accepted Answer

Supply cha

Question 13

While freight rates are often based on very complicated pricing systems,in general,the primary freight price factor is based on which of the following attributes?

Accepted Answer

A) damage record 
B) on-time delivery 
C) door-to-door service 
D) speed of shipment 
E) consolidation capabilities 
A) damage record 
B) on-time delivery 
C) door-to-door service 
D) speed of shipment 
E) consolidation capabilities

Question 14

Transferring to external vendors a firm's activities that have traditionally been internal is known as ________.

Accepted Answer

The answer of Transferring to external vendors a firm's activities...

Question 15

A restaurant runs a special promotion on lobster and plans to sell twice as many lobsters as usual.When this large order is sent to the distributor,the distributor assumes the large size is a trend,not a one-time event.The distributor therefore places an even larger order with the lobsterman.This behavior is the result of which of the following?

Accepted Answer

A) double marginalization 
B) the bullwhip effect 
C) CPFR 
D) postponement 
E) vendor-managed inventory 
A) double marginalization 
B) the bullwhip effect 
C) CPFR 
D) postponement 
E) vendor-managed inventory

Question 16

Channel assembly,which sends components and modules to be assembled by a distributor,treats these distributors as manufacturing partners.

Accepted Answer

A) True 
 B)False

Question 17

Use of a diversified supply base represents one of the most common supply chain risk reduction tactics for several different supply chain risk categories.

Accepted Answer

A) True 
 B)False

Question 18

Identify three common occurrences that contribute to distortions of information about what is really occurring in the supply chain.

Accepted Answer

(1)local optimization; (2)ince

Question 19

In most manufacturing industries,which of the following would likely represent the largest cost to the firm?

Accepted Answer

A) transportation 
B) purchasing 
C) insurance 
D) financing 
E) advertising 
A) transportation 
B) purchasing 
C) insurance 
D) financing 
E) advertising

Question 20

Which of the following is NOT an advantage of a virtual company?

Accepted Answer

A) speed 
B) total control over every aspect of the organization 
C) specialized management expertise 
D) low capital investment 
E) flexibility 
A) speed 
B) total control over every aspect of the organization 
C) specialized management expertise 
D) low capital investment 
E) flexibility

Exam 12: Supply Chain Management

What three logistics-related costs are relevant when analyzing the choice of number of facilities in a distribution network?

A manufacturing plant averaged $740 of raw materials,$230 of work-in-process inventory,and $1030 of finished goods inventory during the month.If the cost of goods sold this month amounted to $10,000,what is the inventory turnover for the month?

In what type of auction does a buyer initiate the process by submitting a description of the desired product or service?

Which of the following statements does NOT accurately explain what occurs when the number of facilities in a distribution network increases?

With the "many suppliers" sourcing strategy,the order usually goes to the supplier that offers the highest quality.

Identify the nine major categories of supply chain risk.

Cross-sourcing describes the practice of having two suppliers provide every component.

The Institute for Supply Management:

What are the three classic types of negotiation strategies?

Among which of the following industries are purchasing costs the LOWEST percentage of sales?

The transfer of some of what are traditional internal activities and resources of a firm to outside vendors is:

________ describes the coordination of all supply chain activities,starting with raw materials and ending with a satisfied customer.

While freight rates are often based on very complicated pricing systems,in general,the primary freight price factor is based on which of the following attributes?

Transferring to external vendors a firm's activities that have traditionally been internal is known as ________.

Channel assembly,which sends components and modules to be assembled by a distributor,treats these distributors as manufacturing partners.

Use of a diversified supply base represents one of the most common supply chain risk reduction tactics for several different supply chain risk categories.

Identify three common occurrences that contribute to distortions of information about what is really occurring in the supply chain.

In most manufacturing industries,which of the following would likely represent the largest cost to the firm?

Which of the following is NOT an advantage of a virtual company?

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

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