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149 Cards in this Set
- Front
- Back
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Operations Managers are finding online auctions a fertile area for disposing of discontinued inventory |
True |
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The key to effective supply chain management is to get many suppliers to compete with each other, in order to drive down prices |
False |
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Even though a firm may have a low cost strategy, supply chain strategy can select suppliers primarily on response or differentiation. |
False |
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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 |
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Supply chain management faces additional challenges, such as those related to quality production and distribution systems, when companies enter growing global markets. |
True |
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McDonald's was able to utilize existing plants and transportation systems in preparing the supply chain for opening its stores in Moscow. |
False |
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When using the low-cost strategy for supply chain management the firm should invest aggressively to reduce production lead time. |
False |
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Savings in the supply chain exert more leverage as the firm has a lower net profit margin. |
True |
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A reduction in inventory costs is one reason for making rather than buying. |
False |
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Outsourcing refers to transferring a firm's activities that have traditionally been internal to external suppliers. |
True |
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Outsourcing is a form of specialization that allows the outsourcing firm to focus on its critical success factors |
True |
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Supply chain decisions are not generally strategic, in nature, because purchasing is an ordinary expense to most firms. |
False |
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The objective of the make-or-buy decision is to help identify the products and services that can be obtained externally. |
True |
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Because service firms do not acquire goods and services externally, their supply chain management issues are insignificant. |
False |
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Because the supply chain has become so electronic an automated opportunities for unethical behavior have been greatly reduced
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False
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With the many supplier strategy the order usually goes to the supplier that offers the best quality
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False
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Developing long-term partner in relationships with a few suppliers is a long-standing American purchasing strategy
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False
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Vertical integration whether forward or backward requires the firm to become more specialized
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False
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A fast food retailer that acquires a spice manufacture would be practicing backward integration
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True
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KEIRETSUS offer a middle ground between few suppliers and vertical integration
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True
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In several industries, online exchanges have been created by buyers
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True
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The bullwhip effect refers to the increasing fluctuations in orders that often occur as orders move through the supply chain
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True
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Vendor managed inventory is a form of outsourcing
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True
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in the vendor evaluation phase, most companies will use the same list of criteria in the same criteria weights |
False
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One classic type of negotiation strategy is the market-based pricing model
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True
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drop shipping results in time and shipping cost savings |
True
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The supply chain management opportunity call postponement involves the lane deliveries to avoid accumulation of interest of the customer site
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False
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Channel assembly, which sends components and modules to be assembled by the store bitter, treats these distributors as manufacturing partners
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True
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Blanket orders or a long-term purchased commitment to a supplier for items that are to be delivered again short-term leases to ship
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True
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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
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true |
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Waterways are an attractive distribution system windspeed is more important than shipping cost
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False
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Logistics management can provide a competitive advantage through improve customer service
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True
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With the growth of Justin time practices railroads have made large games in the shower of the nations transport that they haul
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False
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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
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False
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Benchmark firms have driven down cost of supply chain performance
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True
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The three major variations of online catalogs are…
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Catalogs five vendors, catalogs by intermediaries, and exchange is provided by bars
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Visibility throughout the supply chain is a requirement among supply chain members for…
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Mutual trust
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Which of the following is not a concern of the supply chain?
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Maintenance scheduling
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What type of negotiating strategy requires the supplier to open its books to the purchasers?
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Cost based pricing model
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Which of the following statements is true regarding the leverage of supply chain savings?
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Supply-chain savings exert more leverage as a firm has a lower net profit margin
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One dollar saved in purchasing is…
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Worth even more than a dollar earned in sales revenue
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Which of the following statements about purchasing is true?
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purchasing has an impact on the quality of the goods and services sold |
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In the make or buy decision one of the reasons for making is…
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To assure adequate supply in terms of quantity
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In the make or buy decision which of the following is a reason for making an item?
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Lower production cost
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In the make or buy decision one of the reasons for buying is…
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In adequate capacity
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In the make or buy decision which of the following is not a reason for buying?
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To obtain desired quality
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Outsourcing...
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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 |
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The transfer of some of what our traditional internal activities and resources of a firm to outside vendors is…
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Outsourcing
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The Institute for supply management…
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Publishes the principles and standards for ethical supply management conduct
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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
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Keeping a product generic as long as possible before customizing is known as…
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Postponement
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Which of the following is not a supply-chain strategy?
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Short-term relationships with a few suppliers
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A disadvantage of the few supply our strategy is…
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The high cost of changing partners
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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
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Which of the following is not an advantage of the few suppliers concepts?
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Vulnerability of trade secrets
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Which of the following supply chain strategies creates value by allowing suppliers to have economies of scale |
Long term partnering with a few suppliers
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Which of the following is not a condition that favors the success of vertical integration?
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Small marketshare
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Which of the following best describes vertical integration?
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To produce goods or services previously purchased
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The fried chicken fast food chain better car feedmills and poultry farms has performed…
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Backward integration
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Vertical integration appears particularly advantageous when the organization has…
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A large market share
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A rice mill and southern Louisiana purchase of the trucking firm that transports package price to distributors. this is an example of…
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Forward integration
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Japanese manufactures often take a middle ground between purchasing from a few suppliers and vertical integration. This approach is…
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KEIRETSU
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The Japanese concept of a company coalition of suppliers is…
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KEiRETSU
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Local optimization is a supply-chain complication best described as… |
Optimizing ones local area without full knowledge of organizational needs
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The bullwhip effect…
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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 |
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Which of the following is not an advantage of a virtual company?
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Total control over every aspect of organization
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Which of the following is not an opportunity for effective management in the supply chain? |
Local optimization
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Which of the following is an opportunity for effective management in the supply chain?
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Channel assembly
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Drop shipment…
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Means the supplier will ship directly to the consumer rather than to the seller
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Manufacturer has delivered carpet directly to the end consumer rather than to the carpet dealer. The carpet manufacturer is practicing…
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Drop shipping
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Hewlett-Packard withhold customization of its laser printers as long as possible. This is an example of…
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postponement
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All of the following are opportunities for supply-chain management except…
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line balancing… The ones that are opportunities are postponement, drop shipment, blanket orders, and channel assembly |
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Which of the following is an advantage of the postponement take me?
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Reduction in inventory investment
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A furniture maker has delivered the dining set directly to the end consumer rather than to the furniture store. The furniture maker is practicing…
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Drop shipping
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What is the average capacity utilization in the motor carrier (trucking) industry?
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50%
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What term is used to describe the outsourcing of logistics?
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Third party logistics
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E-procurement…
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Is the same thing as Internet purchasing
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The three classic types of negotiation strategies are…
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Cost based pricing model, market-based pricing model, and competitive bidding
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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?
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12.50
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The three stages of vendor selection in order are...
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Vendor evaluation, vendor development, and negotiations
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Which of the following distribution systems offers quickness and reliability when emergency supplies are needed overseas?
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Airfreight
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With the growth of JIT which of the following distribution systems has been the biggest loser?
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Railroads
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By which distribution system is 90% of the nations Cole shipped?
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Railroads
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Which distribution system is the fastest-growing Moto shipping?
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Airfreight
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Which of the following devices represents an opportunity for technology to improve security of container shipments?
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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
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Which one of the following performance measures is not true of the word class firm?
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Large lead time
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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?
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4.16
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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.
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Supply chain management
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The this decision involves choosing between producing a component or service internally and purchasing it externally
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Make or buy
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Transferring to Extertal been there's a firm's activities that have traditionally been internal is known as this.
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Outsourcing
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The "this" Tatian marks is an organization that was published principles and standards for ethical supply management conduct
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Institute for supply management
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the supply-chain strategy of "this" increases the willingness to participate in just in time. |
A few suppliers
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"This" is developing the ability to produce goods and services previously purchased are actually buying a supplier or distributor.
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Vertical integration
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"This" is a Japanese term to describe suppliers to become part of a company coalition
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KEIRETSU
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"This" rely on a variety of supplier relationships to provide services on demand.
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Virtual companies
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Local optimization, incentives, and large lots all contribute to "this" about what is really occurring in the supply chain.
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Distortion of information
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"This" involves delaying any modifications are customization to the product as long as possible and the production process.
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Postponement
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"This" postpones final assembly of the products of the distribution channel can assemble it |
Channel assembly
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"This" involves reducing the number of variations in materials and components as an aid to cost of management.
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Standardization
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"This" is a standardized data transmittal form out for computerize communications between organizations.
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Electronic data interchange
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"This" is the term describing purchasing facilitated through the Internet
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E – procurement
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Of the three stages of vendor selection, the stage at which criteria, weights, and scores allow a numeric comparison is this.
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Vendor evaluation
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"This" is an approach that seeks efficiency of operations through the integration of all material acquisition, movement, and storage activities.
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Logistics management
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The fastest-growing motive shipping is "this"
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Airfreight
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Not true regarding channel assembly
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Channel assembly sends individual components modules and finish products to the distributor
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Not generally an implication stemming from an increase in the number of facilities?
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A decreased total logistics cost
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Drop shipping
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Supplier will ship directly to end consumer rather than to the seller
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Part collaboration part purchasing from a few suppliers and part vertical integration?
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KeriRETSU networks
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The cost to produce the goods or services sold for a given. Is…`
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Cost of goods sold
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What is not true about the close loop supply chain
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is designed to optimize only reverse clothes
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Reverse logistics close loop supply chain
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The process of sending return products back up the supply chain for resale, repair, reuse, remanufacture, recycling, our disposal
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With regard to the cost based pricing model negotiation strategy what is true?
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Prices are based upon supply cost
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mitigation tactics could reduce economic risk?
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Purchasing contract that address price fluctuations
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Sourcing strategy is common when the products being sourced are commodities?
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Many suppliers
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Response strategy require suppliers to be selected based primarily on…
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Capacity, speed, and flexibility
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Advantage of having many potential suppliers is their willingness to…
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Offer lower prices in the short-term
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NOT RESPONSE STRATEGY DECISION…
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GATHER AND COMMUNICATE MARKET RESEARCH DATA
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Response strategy decisions…
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Transportation fast, low set up time, use buffer stocks to ensure speedy supply
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Prior to embarking on supply-chain design, operation managers first must consider…
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Make or buy an outsourcing decisions
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Supply chain ends with…
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A satisfied customer
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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
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False
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Not one of the differentiation strategy decisions?
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Use buffer stocks to ensure Speedy supply
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Differentiation strategy decisions…
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Minimize inventory to avoid product obsolescence modular design to a product differentiation gather and communicate market research data
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What is transpiring affirms activities that have traditionally been internal to external suppliers?
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Outsourcing
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Outsourcing
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Allows the outsourcing firm to focus on its key success factors, utilizes the efficiency that comes with specialization, transfers traditional internal activities outside vendors
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Advantage of having few suppliers is too…
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Form a long-term relationship
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What is developing the ability to produce goods or services previously purchased or actually buying a supplier or distributor |
Vertical integration
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Reduce distribution risk?
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Careful selection, monitoring and effective contract with penalties
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What is true regarding cross sourcing?
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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
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What is a long-term purchased commitment to a supplier for items that are to be delivered again short-term leases to ship?
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Blanket order
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Which negotiation strategy bases price on a published auction or index price
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Market – based price model
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Trucking…
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Is increasingly using computers to manage its operations one of the most flexible transportation modes
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Supply-chain managers outsourced logistics to meet three goals:
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Drive down inventory investment
low delivery costs and improve delivery reliability and speak |
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Three criteria for designing distribution that works to meet customer expectations are…
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Rapid response
Product choice And services |
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Three common measures of supply-chain performance are
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Percentage invested in inventory
Inventory turnover And weeks of supply |
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Supply-chain ends with…
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Satisfied customers
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This statement is not true
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Supply chain management describes the coordination of all supply chain activities starting with raw materials and ending with a satisfied customer
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Highest the bar chain cost as a percentage of sales?
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Petroleum
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A response strategy require suppliers to be selected based primarily on...
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Capacity, speed, and flexibility
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What is not one of the differentiation strategy decisions?
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Use buffer stocks to interest beauty supply
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Prior to embarking on supply-chain design, operation managers must first consider…
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Make bar by and outsourcing decisions
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Not one of the response strategy decisions? |
Gather and communicate market research data
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Reduce distribution risk?
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Careful selection
Monitoring and effective contracts with penalty |
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Which mitigation tactics could reduce economic risk?
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Purchasing contract that address price fluctuations
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Which mitigation tactic is not designed to reduce the risk of information loss or distortion?
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Alternate sourcing
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True regarding cross sourcing?
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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
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Not true regarding the bullwhip affect?
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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
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What is a long-term purchased commitment to a supplier for items that are to be delivered against short term leases to ship?
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Blanket order
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What is the first stage of supplier selection?
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Supplier evaluation
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