In e-commerce, the front-end design is significantly more important than the back-end design.
True
False
answer
False
question
Which of the following is not a measure of the reliability of the supply chain?
improving e-fulfillment statistics
lead time variability
fill rate
on-time delivery
supply chain response time
answer
supply chain response time
question
Which of the following is least likely to be a key consideration when a company chooses a supplier?
value analysis
quality and quality assurance
flexibility of design change
reputation and financial stability
lead time and on-time delivery
answer
value analysis
question
Information technology is the key to success of global supply chains.
True
False
answer
True
question
(I) are used to track goods in distribution.
(II) are used to track job progress in production.
(III) are used to provide special instructions to operators.
(IV) can be used in inventory record keeping.
I, II, and IV
II and III only
I and II only
IV only
II, III, and IV
answer
I, II, and IV
question
Which of the following is not a goal of supply chain management?
fewer suppliers and long-term relationships
on-time deliveries
lowest possible transportation costs
delivery often to the place of use
small lot sizes
answer
lowest possible transportation costs
question
One disadvantage to RFID is that it requires a clear "line of sight" to operate.
True
False
answer
False
RFID doesn't need line-of-sight reading.
question
To avoid temporary storage in a warehouse, cross-docking can be used.
True
False
answer
True
In cross-docking, inbound goods are moved directly onto outbound trucks.
question
The importance of purchasing relates only to the cost of parts and materials purchased, which is often 60 percent or more of the cost of finished goods.
True
False
answer
False
Purchasing is important because other costs resulting from the purchase of parts and materials are highly consequential.
question
Which of the following is not a benefit of centralized purchasing?
potential for use of purchasing specialists
supplier research
quick response to local needs
potential for quantity discounts
better service from suppliers
answer
quick response to local needs
question
_________ has/have helped firms to concentrate on their core business.
Supply chains
ERP
Scheduling
Outsourcing
Lean production
answer
Outsourcing
question
An advantage of decentralized purchasing is the attention given to local needs.
True
False
answer
True
question
One of the major reasons for a company to adopt third-party logistics is to concentrate on one's core business.
True
False
answer
True
Outsourcing logistics to third parties enables a company to focus on its core business.
question
The optimization of the supply chain uses a mathematical model to determine the optimal number of business organizations to be included in the chain.
True
False
answer
False
Optimizing a supply chain through mathematical models is typically not feasible.
question
The service function of purchasing interfaces with many areas, including legal, accounting, and engineering functions.
True
False
answer
True
question
The importance of purchasing relates only to the cost of parts and materials purchased, which is often 60 percent or more of the cost of finished goods.
True
False
answer
False
Purchasing is important because other costs resulting from the purchase of parts and materials are highly consequential.
question
The two types of decisions that are relevant to supply chain management are:
location and layout.
domestic and international.
in-sourcing and outsourcing.
tactical and operational.
short- and long-term.
answer
tactical and operational.
Decision making in supply chain management falls into either tactical or operational areas.
question
The goal of supply chain management is to synchronize supply and demand of all of the organizations that are part of the chain.
True
False
answer
True
Synchronizing multiple organizations is one of the difficulties of supply chain management.
question
Using third-party fulfillment means losing control of fulfillment.
True
False
answer
True
Outsourcing this key function means a loss of control.
question
Starting with the final customer and moving backward through the supply chain, batch sizes and the level of safety stock tend to decrease.
True
False
answer
False
question
Which of the following is not a goal of supply chain management?
lowest possible transportation costs
delivery often to the place of use
small lot sizes
on-time deliveries
fewer suppliers and long-term relationships
answer
lowest possible transportation costs
Minimizing transportation costs might lead to an unacceptable trade-off elsewhere.
question
Real-time information about product movement on store shelves could benefit from the use of:
answer
radio frequency identification tags.
question
Small changes in consumer demand can result in large variations in orders placed because of the:
safety stock requirement.
FCFS scheduling.
lead time effect.
supply chain.
bullwhip effect.
answer
Bullwhip effect
question
Event management is the advanced planning required for major performances such as concerts or conferences.
True
False
answer
False
Event management involves detecting and responding to unplanned events.
question
Decentralized purchasing can usually offer quicker response than centralized purchasing.
True
False
answer
True
Centralized purchasing can be more efficient, but decentralized purchasing can offer faster response.
question
The purchasing perspective of the supplier as a partner is characterized by:
low volume.
an emphasis on low prices.
100 percent inspection for quality.
one or a few suppliers.
low flexibility.
answer
one or a few suppliers.
Fewer suppliers enhance the chances of building real partnerships.
question
Strategic partnering is encouraged when two or more business organizations have complementary products or services that would benefit the others.
True
False
answer
True
Complementarity is key to successful strategic partnering.
Inventory velocity refers to the average speed (in miles/hour) of material handling equipment in a warehouse.
True
False
answer
False
Velocity refers to the rate at which goods pass through a supply chain.
question
Which of the following is not a measure of the reliability of the supply chain?
fill rate
supply chain response time
lead time variability
on-time delivery
improving e-fulfillment statistics
answer
supply chain response time
Response time is a measure of supply chain effectiveness.
question
It is especially the case for small businesses that closer interactions and increased agility make __________ relatively more attractive.
domestic suppliers
risk transfer
decentralized purchasing
global suppliers
centralized purchasing
answer
domestic suppliers
question
Using third-party logistics involves using your organization's logistics function to ship to customers that are not officially part of the supply chain.
True
False
answer
False
Using third-party logistics involves outsourcing the logistics function.
question
Disintermediation refers to the phenomenon that the traditional retailer or service provider is reduced or eliminated in a supply chain.
True
False
answer
True
Disintermediation involves reducing one or more steps in a supply chain by cutting out intermediaries.
question
Which of the following is not a performance driver?
cost
flexibility
stability
quality
velocity
answer
stability
question
The website and order fulfillment are essential features of:
e-commerce.
Internet service providers.
market segmentation.
inventory balancing.
delayed differentiation.
answer
e-commerce.
question
Which of these aspects of supply chain management are especially concerning to small business?
(I) customer reliability
(II) inventory management
(III) purchasing costs
(IV) risk management
(V) international trade
I, III, and IV only
III, IV, and V only
I and II only
I, II, and III only
II, IV, and V only
answer
II, IV, and V only
Three aspects of supply chain management that are often of concern to small businesses are: (1) inventory management; (2) reducing risks; and (3) international trade.
question
Traffic management refers to truck movement within our parking areas.
True
False
answer
False
Traffic management is the management of the shipment of incoming and outgoing goods.
question
In purchasing, one's only ethical obligation is to one's suppliers.
True
False
answer
False
Purchasing personnel have ethical obligations with regard to a variety of stakeholders, primarily the organizations that employ them.
question
The activity which begins with a request from within the organization is:
supply chain management.
purchasing cycle.
outsourcing search.
order receipt.
supplier selection.
answer
purchasing cycle
question
The purchasing cycle begins with:
placing an order.
receiving a requisition.
selecting a supplier.
conducting a value analysis.
evaluating potential vendors.
answer
receiving a requisition.
question
Which of the following would not usually be a main factor in selecting a vendor?
location
quality
inventory turnover
vendor services
price
answer
inventory turnover
question
Vendor analysis is the process that evaluates the source of supply in terms of price, quality, reputation, and service.
True
False
answer
True
Evaluating sources in terms of price, quality, reputation, and service is vendor analysis.
question
In supply chain organizations, functions must operate independently of each other.
True
False
answer
False
Functions should be integrated.
question
Which of the following is not true of vendor analysis?
It is usually performed only periodically.
It involves an examination of the function of
purchased parts or raw materials.
Its purpose is to reduce costs and/or improve performance of purchased goods or services.
If improvements are identified, purchasing implements those that purchasing agrees are justified.
Representatives from design and operations may work with purchasing.
answer
It involves an examination of the function of purchased parts or raw materials.
question
Which of the following is a principle required for ethical behavior in purchasing?
(I) loyalty to employer
(II) justice to those you deal with
(III) faith in your profession
II only
III only
I only
II and III only
I, II, and III
answer
I, II, and III
question
Which of the following is an advantage of E-business?
(I) reduction of transaction costs
(II) shortened supply chain response time
(III) greater customer loyalty
I
I, II, and III
II
I and II
II and III
answer
I and II
Gaining and maintaining customer loyalty is even more difficult once a firm is involved in E-business.
question
The interface between the firm and its suppliers is:
distribution.
accounting.
production.
purchasing.
engineering.
answer
purchasing.
question
RFID chips:
(I) are used to track goods in distribution.
(II) are used to track job progress in production.
(III) are used to provide special instructions to operators.
(IV) can be used in inventory record keeping.
I, II, and IV
II and III only
II, III, and IV
I and II only
IV only
answer
I, II, and IV
RFID chips do not contain special instructions.
question
Which of the following is not true of vendor analysis?
Its purpose is to reduce costs and/or improve performance of purchased goods or services.
It is usually performed only periodically.
Representatives from design and operations may work with purchasing.
If improvements are identified, purchasing implements those that purchasing agrees are justified.
It involves an examination of the function of purchased parts or raw materials.
answer
It involves an examination of the function of purchased parts or raw materials.
question
Which of these aspects of supply chain management are especially concerning to small business?
(I) customer reliability
(II) inventory management
(III) purchasing costs
(IV) risk management
(V) international trade
I and II only
I, III, and IV only
III, IV, and V only
I, II, and III only
II, IV, and V only
answer
Three aspects of supply chain management that are often of concern to small businesses are: (1) inventory management; (2) reducing risks; and (3) international trade.
question
MC Qu. 49 Strategies to address supply chain risks inc...
Strategies to address supply chain risks include:
(I) risk avoidance.
(II) risk reduction.
(III) risk projection.
(IV) risk sharing.
I, II, and IV only
II and III only
I, II, III, and IV
II and IV only
I and IV only
answer
Risk management strategies include risk avoidance, risk reduction, and risk sharing with supply chain partners.
question
Vendor analysis has the greatest potential for savings for items which have:
low cost per unit.
high annual usage.
high annual cost-volume.
low annual cost-volume.
high cost per unit.
answer
high annual cost-volume.
question
The more __________ a company's supply chain, the more difficult it is to ensure that the supply chain is managed ethically.
visible
interconnected
competitive
global
shortened
answer
global
Problems with supply chain ethics are particularly difficult to manage when supply chains are global.
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