Question 1

On a recent road trip to the Big Easy,the absentee landlord recorded his gasoline purchases in a logbook that he intended to support his rental expenses for the year.The entries are in the table below: $$\begin{array} { | c | c | } 
\hline \text { Gallons } & \text { Total Cost } \
\hline 15 & \$ 44.40 \
\hline 16 & \$ 36.32 \
\hline 13.5 & \$ 34.70 \
\hline 18 & \$ 45.90 \
\hline 8 & \$ 23.36 \
\hline 12 & \$ 30.72 \
\hline
\end{array}$$ What is the average order size of the gasoline?

Accepted Answer

A) 15.00 
B) 13.75 
C) 14.25 
D) 14.75

Question 2

Dogz reports total revenue of $47,561,cost of goods sold of $32,856 and net receivables of $19,595.Their property,plant and equipment is $19,813 and they have $16,240 of inventory.Which ratio is highest - ART,INVT or PPET?

Accepted Answer

A) ART 
B) INVT 
C) PPET 
D) cannot be determined from the information provided

Question 3

Seasonal inventory should be used when

Accepted Answer

A) a company can rapidly change the rate of its production system at a very low cost. 
B) changing the rate of production is expensive (e.g. ,when workers must be hired or fired). 
C) adjusting to a period of low demand without incurring large costs. 
D) the world is perfectly predictable.

Question 4

Which component of the supply chain decision-making framework would be established first?

Accepted Answer

A) Customer strategy 
B) Supply chain strategy 
C) Supply chain structure 
D) Competitive strategy

Question 5

Lisa rented her goats out to anyone interested in clearing underbrush the natural way on their acreage.She received a call from her client Mary on June 21 and delivered her herd of goats to the site on June 24.The goats were done on June 30 and Lisa presented Mary with an invoice the same day.Mary wrote Lisa a check on July 18 and Lisa cashed it on July 21.What was Lisa's days payable outstanding for Mary's job?

Accepted Answer

A) 18 days 
B) 24 days 
C) 27 days 
D) 30 days

Question 6

Zara sources basic products such as white t-shirts from low cost countries because demand is predictable.For trendy products for which demand is unpredictable,Zara sources from company-owned higher cost factories in Europe.For the predictable demand,Zara strives for ________ and for the unpredictable demand,Zara hopes to achieve ________.

Accepted Answer

A) social responsibility,quality 
B) flexibility,social responsibility 
C) efficiency,flexibility 
D) quality,efficiency

Question 7

The inventory that is built up to counter predictable variability in demand is called

Accepted Answer

A) cycle inventory. 
B) safety inventory. 
C) seasonal inventory. 
D) sourcing.

Question 8

Transforming forecasts into plans of activity to satisfy the projected demand is known as

Accepted Answer

A) supply chain coordination. 
B) forecasting. 
C) aggregate planning. 
D) revenue management.

Question 9

________ typically measures the cost of bringing product into a facility as a percentage of sales or cost of goods sold (COGS).

Accepted Answer

A) Average outbound transportation cost 
B) Average inbound transportation cost 
C) Average incoming shipment size 
D) Average inbound transportation cost per shipment

Question 10

Companies using seasonal inventory will build up inventory in periods of low demand and store it for periods of high demand when they will not have the capacity to produce all that is demanded.

Accepted Answer

A) True 
 B)False

Question 11

Information is potentially the biggest driver of performance in the supply chain as it directly affects each of the other drivers.

Accepted Answer

A) True 
 B)False

Question 12

Over the past two months,Lisa has received several orders for goat grazing services.The order date,promise date,and delivery dates are shown in the table below. \[\begin{array} { | c | c | c | } 
\hline \text { Order Date } & \text { Promise Date } & \text { Delivery Date } \
\hline \text { June 1 } & \text { June 2 } & \text { June 3 } \
\hline \text { June 1 } & \text { June 4 } & \text { June 4 } \
\hline \text { June 6 } & \text { June 7 } & \text { June 7 } \
\hline \text { June 13 } & \text { June 15 } & \text { June 15 } \
\hline \text { June 15 } & \text { June 16 } & \text { June 18 } \
\hline \text { June 15 } & \text { June 18 } & \text { June 20 } \
\hline \text { June 18 } & \text { June 22 } & \text { June 22 } \
\hline \text { June 19 } & \text { June 25 } & \text { June 25 } \
\hline \text { June 20 } & \text { June 27 } & \text { June 27 } \
\hline \text { June 22 } & \text { June 29 } & \text { June 29 } \
\hline \text { June 24 } & \text { June 28 } & \text { June 30 } \
\hline \text { June 26 } & \text { July 4 } & \text { July 4 } \
\hline \text { June 28 } & \text { July } 8 & \text { July 7 } \
\hline \text { June 30 } & \text { July } 8 & \text { July 9 } \
\hline
\end{array}\] What is Lisa's percentage of on-time deliveries?

Accepted Answer

A) 75% 
B) 64% 
C) 56% 
D) 51%

Question 13

Which component of the supply chain decision-making framework would be used to reach the performance level dictated by the supply chain strategy?

Accepted Answer

A) Customer strategy 
B) Supply chain strategy 
C) Supply chain structure 
D) Competitive strategy

Question 14

Lost sales are easily tracked by most retailers.

Accepted Answer

A) True 
 B)False

Question 15

The most significant sourcing decision is whether to perform a task in house or to outsource it to a third party.

Accepted Answer

A) True 
 B)False

Question 16

Dogz reports total revenue of $47,561,cost of goods sold of $32,856 and net receivables of $19,595.Their property,plant and equipment is $19,813 and they have $16,240 of inventory.If they operate 300 days a year,how long does the average item stay in inventory?

Accepted Answer

A) 141 days 
B) 137 days 
C) 125 days 
D) 148 days

Question 17

Economies of scale are illustrated by

Accepted Answer

A) a company declaring that they will not have sales,but will maintain very low prices all the time. 
B) the price of a taxi ride service increasing after 2 a.m. 
C) a supplier using a third party logistics firm. 
D) a supplier waiting until enough demand has built up to send a full truckload shipment to their customer.

Question 18

On a recent road trip to the Big Easy,the absentee landlord recorded his gasoline purchases in a logbook that he intended to support his rental expenses for the year.The entries are in the table below: $$\begin{array} { | c | c | } 
\hline \text { Gallons } & \text { Total Cost } \
\hline 15 & \$ 44.40 \
\hline 16 & \$ 36.32 \
\hline 13.5 & \$ 34.70 \
\hline 18 & \$ 45.90 \
\hline 8 & \$ 23.36 \
\hline 12 & \$ 30.72 \
\hline
\end{array}$$ What is the average sale price of the gasoline?

Accepted Answer

A) $2.61 
B) $2.64 
C) $2.67 
D) $2.70

Question 19

The high utilization facility will have difficulty responding to demand fluctuations.

Accepted Answer

A) True 
 B)False

Question 20

Explain the role of each of the major drivers of supply chain performance in the competitive strategy.

Accepted Answer

The answer of Explain the role of each of the...

Exam 3: Supply Chain Drivers and Metrics

Dogz reports total revenue of $47,561,cost of goods sold of $32,856 and net receivables of $19,595.Their property,plant and equipment is $19,813 and they have $16,240 of inventory.Which ratio is highest - ART,INVT or PPET?

Seasonal inventory should be used when

Which component of the supply chain decision-making framework would be established first?

The inventory that is built up to counter predictable variability in demand is called

Transforming forecasts into plans of activity to satisfy the projected demand is known as

________ typically measures the cost of bringing product into a facility as a percentage of sales or cost of goods sold (COGS) .

Companies using seasonal inventory will build up inventory in periods of low demand and store it for periods of high demand when they will not have the capacity to produce all that is demanded.

Information is potentially the biggest driver of performance in the supply chain as it directly affects each of the other drivers.

Which component of the supply chain decision-making framework would be used to reach the performance level dictated by the supply chain strategy?

Lost sales are easily tracked by most retailers.

The most significant sourcing decision is whether to perform a task in house or to outsource it to a third party.

Dogz reports total revenue of $47,561,cost of goods sold of $32,856 and net receivables of $19,595.Their property,plant and equipment is $19,813 and they have $16,240 of inventory.If they operate 300 days a year,how long does the average item stay in inventory?

Economies of scale are illustrated by

The high utilization facility will have difficulty responding to demand fluctuations.

Explain the role of each of the major drivers of supply chain performance in the competitive strategy.