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149 Cards in this Set

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Operations Managers are finding online auctions a fertile area for disposing of discontinued inventory

True

The key to effective supply chain management is to get many suppliers to compete with each other, in order to drive down prices

False

Even though a firm may have a low cost strategy, supply chain strategy can select suppliers primarily on response or differentiation.

False

The supply chain for a brewery would include raw ingredients such as hops and barley but not the manufactured goods such as bottles and cans.

False

Supply chain management faces additional challenges, such as those related to quality production and distribution systems, when companies enter growing global markets.

True

McDonald's was able to utilize existing plants and transportation systems in preparing the supply chain for opening its stores in Moscow.

False

When using the low-cost strategy for supply chain management the firm should invest aggressively to reduce production lead time.

False

Savings in the supply chain exert more leverage as the firm has a lower net profit margin.

True

A reduction in inventory costs is one reason for making rather than buying.

False

Outsourcing refers to transferring a firm's activities that have traditionally been internal to external suppliers.

True

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

True

Supply chain decisions are not generally strategic, in nature, because purchasing is an ordinary expense to most firms.

False

The objective of the make-or-buy decision is to help identify the products and services that can be obtained externally.

True

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

False

Because the supply chain has become so electronic an automated opportunities for unethical behavior have been greatly reduced
False
With the many supplier strategy the order usually goes to the supplier that offers the best quality
False
Developing long-term partner in relationships with a few suppliers is a long-standing American purchasing strategy
False
Vertical integration whether forward or backward requires the firm to become more specialized
False
A fast food retailer that acquires a spice manufacture would be practicing backward integration
True
KEIRETSUS offer a middle ground between few suppliers and vertical integration
True
In several industries, online exchanges have been created by buyers
True
The bullwhip effect refers to the increasing fluctuations in orders that often occur as orders move through the supply chain
True
Vendor managed inventory is a form of outsourcing
True

in the vendor evaluation phase, most companies will use the same list of criteria in the same criteria weights

False
One classic type of negotiation strategy is the market-based pricing model
True

drop shipping results in time and shipping cost savings

True
The supply chain management opportunity call postponement involves the lane deliveries to avoid accumulation of interest of the customer site
False
Channel assembly, which sends components and modules to be assembled by the store bitter, treats these distributors as manufacturing partners
True
Blanket orders or a long-term purchased commitment to a supplier for items that are to be delivered again short-term leases to ship
True
Barcode and radiofrequency technology, like that used to track UPS or FedEx packages on their global journeys can also be used to track objects within the Boundaries of a warehouse or shop

true

Waterways are an attractive distribution system windspeed is more important than shipping cost
False
Logistics management can provide a competitive advantage through improve customer service
True
With the growth of Justin time practices railroads have made large games in the shower of the nations transport that they haul
False
Improvements and security, especially regarding the millions of shipping containers that into the US each year, are being held back by the lack of technological advances
False
Benchmark firms have driven down cost of supply chain performance
True
The three major variations of online catalogs are…
Catalogs five vendors, catalogs by intermediaries, and exchange is provided by bars
Visibility throughout the supply chain is a requirement among supply chain members for…
Mutual trust
Which of the following is not a concern of the supply chain?
Maintenance scheduling
What type of negotiating strategy requires the supplier to open its books to the purchasers?
Cost based pricing model
Which of the following statements is true regarding the leverage of supply chain savings?
Supply-chain savings exert more leverage as a firm has a lower net profit margin
One dollar saved in purchasing is…
Worth even more than a dollar earned in sales revenue
Which of the following statements about purchasing is true?

purchasing has an impact on the quality of the goods and services sold

In the make or buy decision one of the reasons for making is…
To assure adequate supply in terms of quantity
In the make or buy decision which of the following is a reason for making an item?
Lower production cost
In the make or buy decision one of the reasons for buying is…
In adequate capacity
In the make or buy decision which of the following is not a reason for buying?
To obtain desired quality
Outsourcing...

all of the above are true of outsourcing i.e. transfers traditional internal activities to outside vendors, utilize the efficiency which comes with specialization, let's outsourcing firm focus on it's critical success factors

The transfer of some of what our traditional internal activities and resources of a firm to outside vendors is…
Outsourcing
The Institute for supply management…
Publishes the principles and standards for ethical supply management conduct

In supply chain management ethical issues…

All of the above are true I E are particularly important because of the enormous opportunities for abuse, maybe Guided by company rules and codes of conduct, become more complex the more global is the supply chain, maybe guided by the principles and standards of the Institute for supply manager
Keeping a product generic as long as possible before customizing is known as…
Postponement
Which of the following is not a supply-chain strategy?
Short-term relationships with a few suppliers
A disadvantage of the few supply our strategy is…
The high cost of changing partners

the purchasing approach that holds the suppliers reliable for maintaining the necessary technology, expertise, and forecasting ability plus cost, quality, and delivery competencies is…

Many suppliers
Which of the following is not an advantage of the few suppliers concepts?
Vulnerability of trade secrets

Which of the following supply chain strategies creates value by allowing suppliers to have economies of scale

Long term partnering with a few suppliers
Which of the following is not a condition that favors the success of vertical integration?
Small marketshare
Which of the following best describes vertical integration?
To produce goods or services previously purchased
The fried chicken fast food chain better car feedmills and poultry farms has performed…
Backward integration
Vertical integration appears particularly advantageous when the organization has…
A large market share
A rice mill and southern Louisiana purchase of the trucking firm that transports package price to distributors. this is an example of…
Forward integration
Japanese manufactures often take a middle ground between purchasing from a few suppliers and vertical integration. This approach is…
KEIRETSU
The Japanese concept of a company coalition of suppliers is…
KEiRETSU

Local optimization is a supply-chain complication best described as…

Optimizing ones local area without full knowledge of organizational needs
The bullwhip effect…

all of the above i.e. occurs as orders are related from retailers to wholesalers, results in increasing fluctuations at each step of the sequence, increases the cost associated with inventory in the supply chain, occurs because of distortions and information in the supply chain

Which of the following is not an advantage of a virtual company?
Total control over every aspect of organization


Which of the following is not an opportunity for effective management in the supply chain?

Local optimization
Which of the following is an opportunity for effective management in the supply chain?
Channel assembly
Drop shipment…
Means the supplier will ship directly to the consumer rather than to the seller
Manufacturer has delivered carpet directly to the end consumer rather than to the carpet dealer. The carpet manufacturer is practicing…
Drop shipping
Hewlett-Packard withhold customization of its laser printers as long as possible. This is an example of…
postponement
All of the following are opportunities for supply-chain management except…

line balancing… The ones that are opportunities are postponement, drop shipment, blanket orders, and channel assembly

Which of the following is an advantage of the postponement take me?
Reduction in inventory investment
A furniture maker has delivered the dining set directly to the end consumer rather than to the furniture store. The furniture maker is practicing…
Drop shipping
What is the average capacity utilization in the motor carrier (trucking) industry?
50%
What term is used to describe the outsourcing of logistics?
Third party logistics
E-procurement…
Is the same thing as Internet purchasing
The three classic types of negotiation strategies are…
Cost based pricing model, market-based pricing model, and competitive bidding
Consider a firm with a 2007 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 in inventory and 500,000 of property plan equipment what is the inventory turnover?
12.50
The three stages of vendor selection in order are...
Vendor evaluation, vendor development, and negotiations
Which of the following distribution systems offers quickness and reliability when emergency supplies are needed overseas?
Airfreight
With the growth of JIT which of the following distribution systems has been the biggest loser?
Railroads
By which distribution system is 90% of the nations Cole shipped?

Railroads
Which distribution system is the fastest-growing Moto shipping?
Airfreight
Which of the following devices represents an opportunity for technology to improve security of container shipments?
All of the above which are Devices that identify truck and container location, devices that since motion, devices that measure radiation or temperature, devices that can communicate the breaking of the container lock or seal
Which one of the following performance measures is not true of the word class firm?
Large lead time
Consider a firm with the 2007 net income of 20 million, revenue of 60 million, and cost of goods sold 25 million. If the balance sheet amounts show 2 million of inventory and father thousand of property plan equipment how many weeks of supply does the firm hold?
4.16
This is the management of activities that procure raw materials transform those materials into intermediate goods and final products and deliver the products through a distribution system.
Supply chain management
The this decision involves choosing between producing a component or service internally and purchasing it externally
Make or buy
Transferring to Extertal been there's a firm's activities that have traditionally been internal is known as this.
Outsourcing
The "this" Tatian marks is an organization that was published principles and standards for ethical supply management conduct
Institute for supply management

the supply-chain strategy of "this" increases the willingness to participate in just in time.

A few suppliers
"This" is developing the ability to produce goods and services previously purchased are actually buying a supplier or distributor.
Vertical integration
"This" is a Japanese term to describe suppliers to become part of a company coalition
KEIRETSU
"This" rely on a variety of supplier relationships to provide services on demand.
Virtual companies
Local optimization, incentives, and large lots all contribute to "this" about what is really occurring in the supply chain.
Distortion of information
"This" involves delaying any modifications are customization to the product as long as possible and the production process.
Postponement

"This" postpones final assembly of the products of the distribution channel can assemble it

Channel assembly
"This" involves reducing the number of variations in materials and components as an aid to cost of management.
Standardization
"This" is a standardized data transmittal form out for computerize communications between organizations.
Electronic data interchange
"This" is the term describing purchasing facilitated through the Internet
E – procurement
Of the three stages of vendor selection, the stage at which criteria, weights, and scores allow a numeric comparison is this.
Vendor evaluation
"This" is an approach that seeks efficiency of operations through the integration of all material acquisition, movement, and storage activities.
Logistics management
The fastest-growing motive shipping is "this"
Airfreight
Not true regarding channel assembly
Channel assembly sends individual components modules and finish products to the distributor
Not generally an implication stemming from an increase in the number of facilities?
A decreased total logistics cost
Drop shipping
Supplier will ship directly to end consumer rather than to the seller
Part collaboration part purchasing from a few suppliers and part vertical integration?
KeriRETSU networks
The cost to produce the goods or services sold for a given. Is…`
Cost of goods sold
What is not true about the close loop supply chain
is designed to optimize only reverse clothes
Reverse logistics close loop supply chain
The process of sending return products back up the supply chain for resale, repair, reuse, remanufacture, recycling, our disposal
With regard to the cost based pricing model negotiation strategy what is true?
Prices are based upon supply cost
mitigation tactics could reduce economic risk?
Purchasing contract that address price fluctuations
Sourcing strategy is common when the products being sourced are commodities?
Many suppliers
Response strategy require suppliers to be selected based primarily on…
Capacity, speed, and flexibility
Advantage of having many potential suppliers is their willingness to…
Offer lower prices in the short-term
NOT RESPONSE STRATEGY DECISION…
GATHER AND COMMUNICATE MARKET RESEARCH DATA
Response strategy decisions…
Transportation fast, low set up time, use buffer stocks to ensure speedy supply
Prior to embarking on supply-chain design, operation managers first must consider…
Make or buy an outsourcing decisions
Supply chain ends with…
A satisfied customer
The supply chain for A brewery would include raw ingredients such as hops and barley but not the manufactured goods such as bottles and cans
False
Not one of the differentiation strategy decisions?
Use buffer stocks to ensure Speedy supply
Differentiation strategy decisions…
Minimize inventory to avoid product obsolescence modular design to a product differentiation gather and communicate market research data
What is transpiring affirms activities that have traditionally been internal to external suppliers?
Outsourcing
Outsourcing
Allows the outsourcing firm to focus on its key success factors, utilizes the efficiency that comes with specialization, transfers traditional internal activities outside vendors
Advantage of having few suppliers is too…
Form a long-term relationship

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

Vertical integration
Reduce distribution risk?
Careful selection, monitoring and effective contract with penalties
What is true regarding cross sourcing?
Uses once a par for a component in the second supplier for another component, where each supplier acts as a back up for the other
What is a long-term purchased commitment to a supplier for items that are to be delivered again short-term leases to ship?
Blanket order
Which negotiation strategy bases price on a published auction or index price
Market – based price model
Trucking…
Is increasingly using computers to manage its operations one of the most flexible transportation modes
Supply-chain managers outsourced logistics to meet three goals:
Drive down inventory investment

low delivery costs


and improve delivery reliability and speak

Three criteria for designing distribution that works to meet customer expectations are…
Rapid response

Product choice


And services

Three common measures of supply-chain performance are
Percentage invested in inventory

Inventory turnover


And weeks of supply

Supply-chain ends with…
Satisfied customers
This statement is not true
Supply chain management describes the coordination of all supply chain activities starting with raw materials and ending with a satisfied customer
Highest the bar chain cost as a percentage of sales?
Petroleum
A response strategy require suppliers to be selected based primarily on...
Capacity, speed, and flexibility
What is not one of the differentiation strategy decisions?
Use buffer stocks to interest beauty supply
Prior to embarking on supply-chain design, operation managers must first consider…
Make bar by and outsourcing decisions

Not one of the response strategy decisions?

Gather and communicate market research data
Reduce distribution risk?
Careful selection

Monitoring and effective contracts with penalty

Which mitigation tactics could reduce economic risk?
Purchasing contract that address price fluctuations
Which mitigation tactic is not designed to reduce the risk of information loss or distortion?
Alternate sourcing
True regarding cross sourcing?
Cross sourcing uses one supplier for a component of the second supplier for another component where the supplier acts as a back-up for the other
Not true regarding the bullwhip affect?
The bullwhip effect occurs as autres are relayed from retailers to distributors to wholesalers to manufacturers with fluctuations decreasing at each step in the sequence
What is a long-term purchased commitment to a supplier for items that are to be delivered against short term leases to ship?
Blanket order
What is the first stage of supplier selection?
Supplier evaluation