Exam 11: Supply Chain Management

Supply chain managers outsource logistics to meet what three goals?

Describe a reverse auction (also known as a Dutch auction).

While the prices that consumers pay are often inflexible,a significant number of final prices paid in business-to-business transactions are negotiated.

Explain why once revenue and total logistics costs are considered together,the optimal number of facilities in a distribution network may well increase compared to the optimal number of facilities based on total logistics costs only.Include details about the behavior of relevant cost and revenue elements.

Consider a firm with an annual net income of $20 million,revenue of $60 million and cost of goods sold of $25 million.If the balance sheet amounts show $2 million of inventory and $500,000 of property,plant & equipment,how many weeks of supply does the firm hold?

The bullwhip effect refers to the increasing fluctuations in orders that often occur as orders move through the supply chain.

________ involves reducing the number of variations in materials and components as an aid to cost management.

A grocery chain is interested in exploring the impact effective supply chain management would have.Suppose that for every $1 of sales,4% is profit,50% is spent in the supply chain,and the remaining 46% is evenly divided between fixed and production costs.If the chain can save $1 in the supply chain it would take how many dollars of increased sales to have the same increase in profit? Assume that fixed costs are fixed so that the portion of increased sales allocated to fixed costs is instead profit (27% profit margin combined now).

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

What is the trucking industry doing to improve efficiency?

With cross-sourcing,how many suppliers provide each component on a regular basis (i.e. ,excluding backup suppliers)?

A carpet manufacturer has delivered carpet directly to the end consumer rather than to the carpet dealer.The carpet manufacturer is practicing which of the following?

Outsourcing is a form of specialization that allows the outsourcing firm to focus on its key success factors.

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

Vertical integration appears particularly advantageous when the organization has:

The following data are pulled from a recent Walsh Manufacturing annual report. Assets Raw material inventory $120,000 Work-in-process inventory $50,000 Finished goods inventory $300,000 Property,plant & equipment $500,000 Other assets $200,000 Total assets $1,170,000 Condensed Income Statement Revenue $2,000,000 Cost of goods sold $600,000 Other expenses $1,000,000 Net income $400,000 Calculate: (a)Percent invested in inventory, (b)Inventory turnover,and (c)Weeks of supply.

Which of the following is a primary supplier selection criterion for a firm pursuing a differentiation strategy?

Suppliers are also known as ________.

What are the three classic negotiation strategies? Briefly describe each of them.

Because the supply chain has become so electronic and automated,opportunities for unethical behavior have been greatly reduced.