Question 1

A container of ball-bearings valued at $25,000, currently located in Brandon, Manitoba, needs to be delivered to the Brampton, Ontario, plant. The standard shipment method takes two days. However, for an additional charge of $500, the container can be sent overnight. The annual holding cost rate for this type of item has been estimated at 28%. What option is more economical?

Accepted Answer

Daily cost of holding the item is .28(25...

Question 2

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

Accepted Answer

A) True 
 B)False  True

Question 3

Describe some ways that effective supply-chain partners build and utilize mutual trust.

Accepted Answer

Members of the chain must enter into a r...

Question 4

All of the following are "opportunities" for supply-chain management except

Accepted Answer

A)   postponement.
B)   drop shipment.
C)   blanket orders.
D)   channel assembly.
E)   line balancing.

Question 5

The three major variations of online catalogues are

Accepted Answer

A)   catalogues by vendors, catalogues by intermediaries, and exchanges provided by buyers.
B)   EDI, ERP, and ASN.
C)   cost-based, market-based, and competitive bidding.
D)   drop shipping, channel assembly, and postponement.
E)   all auction-based.

Question 6

Which of the following is an aspect of environmental risk in supply-chain management?

Accepted Answer

A)   political issues
B)   management metrics
C)   secure financial transactions
D)   raw material availability
E)   logistics planning

Question 7

What are the advantages of shipping by truck?

Accepted Answer

The advantages of shipping by ...

Question 8

Walmart's management of its supply chain for Proctor and Gamble's Pampers Baby-Dry diapers is an example of

Accepted Answer

A)   blanket orders.
B)   standardization.
C)   postponement.
D)   lot size reduction.
E)   single stage control of replenishment.

Question 9

The three stages of vendor selection, in order, are

Accepted Answer

A)   vendor evaluation, vendor development, and negotiations.
B)   vendor development, vendor evaluation, and vendor acquisition.
C)   introduction, growth, and maturity.
D)   vendor evaluation, negotiations, and vendor development.
E)   EDI, ERP, and ASN.

Question 10

Improvements in security, especially regarding the millions of shipping containers that enter the Canada each year, are being held back by the lack of technological advances.

Accepted Answer

A) True 
 B)False

Question 11

The "bullwhip" effect

Accepted Answer

A)   occurs as orders are relayed from retailers to wholesalers.
B)   results in increasing fluctuations at each step of the sequence.
C)   increases the costs associated with inventory in the supply chain.
D)   occurs because of distortions in information in the supply chain.
E)   all of the above.

Question 12

Describe vendor managed inventory (VMI). How is it related to outsourcing? Cite an example from your experiences as a shopper.

Accepted Answer

In vendor managed inventory, the supplie...

Question 13

Vendor-Managed Inventory is a form of outsourcing.

Accepted Answer

A) True 
 B)False

Question 14

Toyota's policy of having two suppliers per component after its experience with fire and earthquakes is similar to Hark Rock Café's franchising in societies that have significant cultural or environmental barriers because

Accepted Answer

A)   both companies are coping with environmental supply-chain risks.
B)   both companies are coping with process supply-chain risks.
C)   both companies are coping with control supply-chain risks.
D)   both companies are addressing outsourcing.
E)   both companies are addressing inventory level optimization. A

Question 15

The three classic types of negotiation strategies are

Accepted Answer

A)   vendor evaluation, vendor development, and vendor 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)   vendor-managed inventory, channel assembly, blanket orders.

Question 16

Because service firms do not acquire goods and services externally, their supply-chain management issues are insignificant.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A)   postponement.
B)   cross-docking.
C)   channel assembly.
D)   drop shipping.
E)   float reduction. D

Question 18

________ is developing the ability to produce goods or services previously purchased or actually buying a supplier or a distributor.

Accepted Answer

Vertical i...

Question 19

Which one of the following is not a supply-chain strategy?

Accepted Answer

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

Question 20

Giving quantity discounts based on annual volume instead of single order size helps to control which supply-chain issue?

Accepted Answer

A)   control risk
B)   environmental risk
C)   the bullwhip effect
D)   unethical supplier behaviour
E)   vendor-managed inventory

Exam 11: Supply-Chain Management

Correct Answer
verified
Daily cost of holding the item is .28(25...
View Answer

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

Correct Answer
verified
True

Describe some ways that effective supply-chain partners build and utilize mutual trust.

Correct Answer
verified
Members of the chain must enter into a r...
View Answer

All of the following are "opportunities" for supply-chain management except

Correct Answer
verified

The three major variations of online catalogues are

Correct Answer
verified

Which of the following is an aspect of environmental risk in supply-chain management?

Correct Answer
verified

What are the advantages of shipping by truck?

Correct Answer
verified
The advantages of shipping by ...
View Answer

Walmart's management of its supply chain for Proctor and Gamble's Pampers Baby-Dry diapers is an example of

Correct Answer
verified

The three stages of vendor selection, in order, are

Correct Answer
verified

Improvements in security, especially regarding the millions of shipping containers that enter the Canada each year, are being held back by the lack of technological advances.

Correct Answer
verified

The "bullwhip" effect

Correct Answer
verified

Describe vendor managed inventory (VMI). How is it related to outsourcing? Cite an example from your experiences as a shopper.

Correct Answer
verified
In vendor managed inventory, the supplie...
View Answer

Vendor-Managed Inventory is a form of outsourcing.

Correct Answer
verified

Toyota's policy of having two suppliers per component after its experience with fire and earthquakes is similar to Hark Rock Café's franchising in societies that have significant cultural or environmental barriers because

Correct Answer
verified
A

The three classic types of negotiation strategies are

Correct Answer
verified

Because service firms do not acquire goods and services externally, their supply-chain management issues are insignificant.

Correct Answer
verified

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

Correct Answer
verified
D

________ is developing the ability to produce goods or services previously purchased or actually buying a supplier or a distributor.

Correct Answer
verified
Vertical i...
View Answer

Which one of the following is not a supply-chain strategy?

Correct Answer
verified

Giving quantity discounts based on annual volume instead of single order size helps to control which supply-chain issue?

Correct Answer
verified

Exam 11: Supply-Chain Management

Correct AnswerverifiedDaily cost of holding the item is .28(25...View AnswerShow Answer

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

Correct AnswerverifiedTrue

Describe some ways that effective supply-chain partners build and utilize mutual trust.

Correct AnswerverifiedMembers of the chain must enter into a r...View AnswerShow Answer

All of the following are "opportunities" for supply-chain management except

Correct AnswerverifiedShow Answer

The three major variations of online catalogues are

Correct AnswerverifiedShow Answer

Which of the following is an aspect of environmental risk in supply-chain management?

Correct AnswerverifiedShow Answer

What are the advantages of shipping by truck?

Correct AnswerverifiedThe advantages of shipping by ...View AnswerShow Answer

Walmart's management of its supply chain for Proctor and Gamble's Pampers Baby-Dry diapers is an example of

Correct AnswerverifiedShow Answer

The three stages of vendor selection, in order, are

Correct AnswerverifiedShow Answer

Improvements in security, especially regarding the millions of shipping containers that enter the Canada each year, are being held back by the lack of technological advances.

Correct AnswerverifiedShow Answer

The "bullwhip" effect

Correct AnswerverifiedShow Answer

Describe vendor managed inventory (VMI). How is it related to outsourcing? Cite an example from your experiences as a shopper.

Correct AnswerverifiedIn vendor managed inventory, the supplie...View AnswerShow Answer

Vendor-Managed Inventory is a form of outsourcing.

Correct AnswerverifiedShow Answer

Toyota's policy of having two suppliers per component after its experience with fire and earthquakes is similar to Hark Rock Café's franchising in societies that have significant cultural or environmental barriers because

Correct AnswerverifiedA

The three classic types of negotiation strategies are

Correct AnswerverifiedShow Answer

Because service firms do not acquire goods and services externally, their supply-chain management issues are insignificant.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedD

________ is developing the ability to produce goods or services previously purchased or actually buying a supplier or a distributor.

Correct AnswerverifiedVertical i...View AnswerShow Answer

Which one of the following is not a supply-chain strategy?

Correct AnswerverifiedShow Answer

Giving quantity discounts based on annual volume instead of single order size helps to control which supply-chain issue?

Correct AnswerverifiedShow Answer

Correct Answer
verified
Daily cost of holding the item is .28(25...
View Answer

Correct Answer
verified
True

Correct Answer
verified
Members of the chain must enter into a r...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The advantages of shipping by ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
In vendor managed inventory, the supplie...
View Answer

Correct Answer
verified

Correct Answer
verified
A

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
D

Correct Answer
verified
Vertical i...
View Answer

Correct Answer
verified

Correct Answer
verified