Question 1

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 these are true.F) B) and E)
G) B) and D)

Question 2

Benchmark firms have driven down costs of supply-chain performance.

Accepted Answer

A) True 
 B)False

Question 3

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 expertiseF) A) and D)
G) C) and E)

Question 4

Vertical integration, whether forward or backward, requires the firm to become more specialized.

Accepted Answer

A) True 
 B)False

Question 5

Savings in the supply chain exert more leverage as the firm's net profit margin decreases.

Accepted Answer

A) True 
 B)False

Question 6

A furniture maker has delivered a dining set directly to the end consumer rather than to the furniture store. The furniture maker is practicing which of the following?

Accepted Answer

A)   postponement
B)   drop shipping
C)   channel assembly
D)   passing the buck
E)   float reductionF) B) and C)
G) A) and B)

Question 7

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.F) A) and C)
G) C) and D)

Question 8

TAL Apparel's management of its supply chain for Stafford shirts sold at JCPenney is an example of which of the following?

Accepted Answer

A)   blanket orders
B)   standardization
C)   postponement
D)   lot size reduction
E)   single-stage control of replenishmentF) A) and C)
G) A) and B)

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)   1
B)   2
C)   3
D)   equal to the total number of components
E)   equal to the number of countries to which the final product is soldF) C) and D)
G) A) and B)

Question 11

Which of the following best describes backward 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 suppliersF) D) and E)
G) C) and D)

Question 12

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?

Accepted Answer

A)   postponement
B)   cross-docking
C)   channel assembly
D)   drop shipping
E)   float reductionF) C) and E)
G) A) and C)

Question 13

In this age of increasing specialization, low communication cost, and fast transportation, companies are making more and buying less.

Accepted Answer

A) True 
 B)False

Question 14

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)   kaizenF) A) and B)
G) B) and E)

Question 15

Which of the following is NOT one of the risk mitigation tactics for the supply chain risk category of suppliers failing to deliver?

Accepted Answer

A)   use multiple suppliers
B)   effective contracts with penalties
C)   subcontractors on retainer
D)   require overnight delivery
E)   pre-planningF) B) and C)
G) A) and C)

Question 16

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 17

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 capabilitiesF) A) and E)
G) A) and D)

Question 18

Which of the following is NOT a typical benefit of centralized purchasing?

Accepted Answer

A)   leverage purchase volume for better pricing
B)   develop specialized staff expertise
C)   reduce the duplication of tasks
D)   reduce lead times
E)   promote standardizationF) B) and C)
G) C) and D)

Question 19

A manufacturing plant averaged $540 of raw materials, $230 of work-in-process inventory, and $1230 of finished goods inventory during the month. If the cost of goods sold this month amounted to $12,000, what is the inventory turnover for the month?

Accepted Answer

Monthly inventory turnover = M...

Question 20

Suppliers are also known as ________.

Accepted Answer

The answer of Suppliers are also known as ________....

Exam 10: Supply Chain Management

A manufacturing plant averaged $540 of raw materials, $230 of work-in-process inventory, and $1230 of finished goods inventory during the month. If the cost of goods sold this month amounted to $12,000, what is the inventory turnover for the month?

Correct AnswerverifiedMonthly inventory turnover = M...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

TAL Apparel's management of its supply chain for Stafford shirts sold at JCPenney is an example of which of the following?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Suppliers are also known as ________.

Correct AnswerverifiedShow Answer

Vertical integration, whether forward or backward, requires the firm to become more specialized.

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

In this age of increasing specialization, low communication cost, and fast transportation, companies are making more and buying less.

Correct AnswerverifiedShow Answer

In supply chain management, ethical issues:

Correct AnswerverifiedShow Answer

A furniture maker has delivered a dining set directly to the end consumer rather than to the furniture store. The furniture maker is practicing which of the following?

Correct AnswerverifiedShow Answer

Which of the following is NOT a typical benefit of centralized purchasing?

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 which of the following?

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Savings in the supply chain exert more leverage as the firm's net profit margin decreases.

Correct AnswerverifiedShow Answer

Benchmark firms have driven down costs of supply-chain performance.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following best describes backward integration?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is NOT one of the risk mitigation tactics for the supply chain risk category of suppliers failing to deliver?

Correct AnswerverifiedShow Answer

Correct Answer
verified
Monthly inventory turnover = M...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified