Chapter 11 example #37510

30 June 2024
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question
The cost to produce the goods or services sold for a given period is referred to as
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cost of goods sold.
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Which of the following statements is NOT​ true?
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An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting.
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Inventory turnover is equal to
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cost of goods sold​ / inventory investment.
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A fried chicken​ fast-food chain that acquired feed mills and poultry farms has performed which of the​ following?
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backward integration
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Which of the following describes using one supplier for a component and a second supplier for another​ component, where each supplier acts as a backup for the​ other?
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cross-sourcing
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Which of the following devices represents an opportunity for technology to improve security of container​ shipments?
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devices that measure radiation or temperature devices that can communicate the breaking of a container lock or seal devices that sense motion devices that identify truck and container location All of the above
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Local optimization is a​ supply-chain complication best described​ as:
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optimizing​ one's local area without full knowledge of supply chain needs.
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What is the practice of keeping a product generic as long as possible before​ customizing?
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postponement
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In queuing​ problems, which of the following probability distributions is typically used to describe the time to perform the​ service?
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negative exponential
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The common measures of a queuing​ system's performance​ include:
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. average time each customer spends in the​ system, probability that the service system will be​ idle, and average time each customer spends in the queue.
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The shopper who says to​ himself, "I've waited too long in this line. I​ don't really need to buy this product​ today," and leaves the store is an illustration of which element of arrival​ behavior?
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renege
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Which of the following industries has the highest supply chain cost as a percentage of​ sales?
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petroleum
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A response strategy requires suppliers be selected based primarily on
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capacity, speed, and flexibility.
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Which of the following statements is NOT one of the differentiation strategy​ decisions?
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Use buffer stocks to ensure speedy supply.
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Prior to embarking on supply chain​ design, operations managers must first consider
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"make-or-buy" and outsourcing decisions.
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What is transferring a​ firm's activities that have traditionally been internal to external​ suppliers?
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outsourcing
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Which of the following statements is NOT one of the response strategy​ decisions?
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gather and communicate market research data
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The advantage of having few suppliers is to
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form a​ long-term relationship.
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The 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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What is developing the ability to produce goods or services previously purchased or actually buying a supplier or a​ distributor?
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vertical integration
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Which of the following strategies is part​ collaboration, part purchasing from few​ suppliers, and part vertical​ integration?
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keiretsu networks
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Which of the following could reduce distribution​ risk?
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careful​ selection, monitoring and effective contracts with penalties
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Which of the following mitigation tactics could reduce economic​ risk?
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purchasing contracts that address price fluctuations
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Which of the following mitigation tactics is NOT designed to reduce the risk of information loss or​ distortion?
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alternate sourcing
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Which of the following statements is true regarding​ cross-sourcing?
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Cross-sourcing uses one supplier for a component and a second supplier for another​ component, where each supplier acts as a backup for the other.
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Which of the following statements is NOT true regarding the bullwhip​ effect?
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The bullwhip effect occurs as order are relayed from​ retails, to​ distributors, to​ wholesalers, to​ manufacturers, with fluctuations decreasing at each step in the sequence.
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What is a​ long-term purchase commitment to a supplier for items that are to be delivered against​ short-term releases to​ ship?
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blanket order
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A lawnmower assembly plant uses a variety of​ nuts, bolts,​ screws, and other fasteners in its operation. Its supplier delivers these items directly to the point of use on the assembly line and ensures that there are always sufficient quantities of fasteners to maintain the production schedule. This is an example of
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vendor-managed inventory.
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The​ do-it-yourselfer plucked a gallon can of base paint from the shelf of the local hardware store and handed it to​ Keith, the cheerful clerk at the paint counter. Their eyes met briefly and the​ do-it-yourselfer silently handed over sample​ 150C-1, Musical​ Mist, to the clerk. It was impractical to keep several gallons of every possible color on the shelves at the hardware​ store, so the paint manufacturer had created clever workaround. The workaround was a​ computer-based system that added predetermined quantities of pigments to a gallon can of base paint depending on the desired​ shade, in this​ case, Musical Mist. The hardware store now needed to stock only the base​ paint, this​ machine, and a small supply of paint pigments in order to create the thousands of colors in its catalog. This scenario is a prime example of
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postponement.
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Which of the following is the first stage of supplier​ selection?
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supplier evaluation
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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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With regard to the​ cost-based price model negotiation​ strategy, which of the following is​ true?
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Prices are based upon supplier costs.
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Which of the following is NOT one of the benefits accrued from a centralized purchasing​ function?
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Increase the duplication of tasks.
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Trucking
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is increasingly using computers to manage its operations.
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Airfreight
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is the fastest growing mode of shipping
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Supply chain managers outsource logistics to meet three​ goals:
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drive down inventory​ investment, lower delivery​ costs, and improve delivery reliability and speed.
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Which of the following statements is NOT true regarding channel​ assembly?
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Channel assembly sends individual​ components, modules, and finished​ products, to the distributor.
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Three criteria for designing distribution networks to meet customer expectations​ are:
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rapid​ response, product​ choice, and service.
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Which of the following statements is NOT generally an implication stemming from an increase in the number of​ facilities?
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decreased total logistics cost
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When determining the optimal number of​ facilities, logistics-related costs do NOT usually include which of the following​ costs?
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purchasing
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Which of the following statements is NOT​ true?
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Finding the optimal number of facilities represents a critical and static decision.
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Which of the following statements is NOT​ true?
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A​ closed-loop supply chain is a designed to optimize only reverse flows.
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Which of the following is NOT true about reverse logistics as compared to foward​ logistics?
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speed is often very important
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What is a supply chain designed to optimize both forward and reverse​ flows?
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closed-loop supply chain
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Which organization has developed principles and standards to be used as guidelines for ethical​ behavior?
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Institute for Supply Management
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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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a supply chain ends with
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a satisfied customer
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which of the following best describes vertical integration
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produce goods or services previously purchased
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what event in 2011 caused manufacturers in several industries worldwide to wait 6 months or longer to see their supply chains working normally again
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Japanese earthquake and tsunami
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Which of the following is NOT a remedy for the bullwhip effect
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allocate orders based on forecasts
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which of the following is TRUE regarding the bullwhip effect measure?
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variance amplification is present if the bullwhip measure is greater than one
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which of the following statements is NOT true about the factor weighting techniques
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factors are scored using DIFFERENT scales -- meaning factors are scored using the same scale
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Which of the following statements is NOT true?
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the factor weighting approach involve subjective judgement -- truth it does
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faster shipping usually means
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a more expensive shipper and lower holding costs
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which of the following statements is NOT true
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a less expensive shipper tends to result in slower shipments and lower holding costs -- HIGHER holding actually
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efficiency in a warehouse is primarily improved by
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reducing worker travel time
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given a set of items needing to be stored in a warehouse in which the number of daily trips and blocks of storage space needed are both known for all items, the item with which of the following should be placed furthest from the dock
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the lowest value of TRIPS / BlOCKS