Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

________ rely on a variety of supplier relationships to provide services on demand.

Accepted Answer

The answer of ________ rely on a variety of supplier...

Question 3

Identify and describe briefly the five supply-chain strategies.

Accepted Answer

1.Many suppliers is the traditional Amer...

Question 4

Which of the following best describes vertical integration?

Accepted Answer

A)  to sell products to a supplier or a distributor
B)  to develop the ability to produce products which complement the original product
C)  to produce goods or services previously purchased
D)  to develop the ability to produce the specified good more efficiently than before
E)  to build long-term partnerships with a few suppliersF) B) and E)
G) All of the above

Question 5

A grocery store is trying to find a new vendor for carrots.Its three criteria are 1.Freshness,2.Lot Size,and 3.Cost with factor weights of .6,.1,and .3 respectively.What would a vendor with ratings of 6,8,and 10 in the three respective categories score as a weighted total?

Accepted Answer

A)  24
B)  1
C)  7.4
D)  9.8
E)  none of the aboveF) D) and E)
G) None of the above

Question 6

The Institute for Supply Management

Accepted Answer

A)  establishes laws and regulations for supply management.
B)  is an agency of the United Nations charged with promoting ethical conduct globally.
C)  publishes the principles and standards for ethical supply management conduct.
D)  prohibits backward integration into developing economies.
E)  is an agency of NAFTA's Ethics Bureau.F) A) and D)
G) A) and C)

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

Vertical i...

Question 9

________ is a standardized data-transmittal format for computerized communications between organizations.

Accepted Answer

Electronic...

Question 10

Local optimization is a supply-chain complication best described as

Accepted Answer

A)  optimizing one's local area without full knowledge of organizational needs.
B)  obtaining very high production efficiency in a decentralized supply chain.
C)  the prerequisite of global optimization.
D)  the result of supply chains built on suppliers with compatible corporate cultures.
E)  the opposite of the bullwhip effect.F) A) and B)
G) A) and E)

Question 11

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

Accepted Answer

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

Question 12

Of the three stages of vendor selection,the stage at which criteria,weights,and scores allow a numeric comparison is ________.

Accepted Answer

The answer of Of the three stages of vendor selection,the...

Question 13

Which one of the following statements about purchasing is true?

Accepted Answer

A)  The cost of purchases as a percent of sales is often small.
B)  Purchasing provides a major opportunity for price increases.
C)  Purchasing is always more efficient than making an item.
D)  Purchasing has an impact on the quality of the goods and services sold.
E)  Competitive bidding is a major factor in long-term cost reductions.F) B) and E)
G) A) and E)

Question 14

When Daimler and BMW pooled resources to develop standardized auto components the supply-chain strategy could best be described by

Accepted Answer

A)  keiretsu.
B)  virtual companies.
C)  joint venture.
D)  vertical integration.
E)  few suppliers.F) A) and B)
G) A) and C)

Question 15

Visibility throughout the supply chain is a requirement among supply-chain members for

Accepted Answer

A)  mutual agreement on goals.
B)  mutual trust.
C)  compatible organizational cultures.
D)  local optimization.
E)  the bullwhip effect.F) A) and B)
G) A) and C)

Question 16

A transportation firm spends 60% of its sales in the supply chain,and has a net profit margin of 6%.The company is about to invest $100,000 in one of two ventures.One venture is advertising-based,and is expected to increase revenues (sales)by $600,000 (after spending the $100,000).The other venture applies the money in supply-chain efficiencies that are expected to save $200,000 (again,after spending the $100,000).Which of these two ventures offers the larger increase in profit to the firm? Use Table 11.3,reproduced below.

Accepted Answer

The relevant entry in Table 11.3,60% of ...

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

A shipment of parts valued at $75,000 needs to be shipped from Tampa,FL,to Chicago,IL.They could be shipped by rail,taking 15 days at a cost of $1,575,or by truck,taking 4 days at a cost of $2,640.The annual holding cost rate for this type of item has been estimated at 22%.What option is more economical?

Accepted Answer

Daily cost of holding the item is .22(75...

Exam 11: Supply-Chain Management

Correct Answer
verified
The relevant entry in Table 11.3,60% of ...
View Answer

Identify and describe briefly the five supply-chain strategies.

Correct Answer
verified
1.Many suppliers is the traditional Amer...
View Answer

A grocery store is trying to find a new vendor for carrots.Its three criteria are 1.Freshness,2.Lot Size,and 3.Cost with factor weights of .6,.1,and .3 respectively.What would a vendor with ratings of 6,8,and 10 in the three respective categories score as a weighted total?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Local optimization is a supply-chain complication best described as

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

When Daimler and BMW pooled resources to develop standardized auto components the supply-chain strategy could best be described by

Correct Answer
verified

The Institute for Supply Management

Correct Answer
verified

Of the three stages of vendor selection,the stage at which criteria,weights,and scores allow a numeric comparison is ________.

Correct Answer
verified

________ rely on a variety of supplier relationships to provide services on demand.

Correct Answer
verified

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

Correct Answer
verified

Which one of the following statements about purchasing is true?

Correct Answer
verified

________ is a standardized data-transmittal format for computerized communications between organizations.

Correct Answer
verified
Electronic...
View Answer

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

Correct Answer
verified

Visibility throughout the supply chain is a requirement among supply-chain members for

Correct Answer
verified

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

Correct Answer
verified
Vertical i...
View Answer

Correct Answer
verified
Daily cost of holding the item is .22(75...
View Answer

Which of the following best describes vertical integration?

Correct Answer
verified

Exam 11: Supply-Chain Management

Correct AnswerverifiedThe relevant entry in Table 11.3,60% of ...View AnswerShow Answer

Identify and describe briefly the five supply-chain strategies.

Correct Answerverified1.Many suppliers is the traditional Amer...View AnswerShow Answer

A grocery store is trying to find a new vendor for carrots.Its three criteria are 1.Freshness,2.Lot Size,and 3.Cost with factor weights of .6,.1,and .3 respectively.What would a vendor with ratings of 6,8,and 10 in the three respective categories score as a weighted total?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Local optimization is a supply-chain complication best described as

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When Daimler and BMW pooled resources to develop standardized auto components the supply-chain strategy could best be described by

Correct AnswerverifiedShow Answer

The Institute for Supply Management

Correct AnswerverifiedShow Answer

Of the three stages of vendor selection,the stage at which criteria,weights,and scores allow a numeric comparison is ________.

Correct AnswerverifiedShow Answer

________ rely on a variety of supplier relationships to provide services on demand.

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

Correct AnswerverifiedShow Answer

Which one of the following statements about purchasing is true?

Correct AnswerverifiedShow Answer

________ is a standardized data-transmittal format for computerized communications between organizations.

Correct AnswerverifiedElectronic...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Visibility throughout the supply chain is a requirement among supply-chain members for

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedVertical i...View AnswerShow Answer

Correct AnswerverifiedDaily cost of holding the item is .22(75...View AnswerShow Answer

Which of the following best describes vertical integration?

Correct AnswerverifiedShow Answer

Correct Answer
verified
The relevant entry in Table 11.3,60% of ...
View Answer

Correct Answer
verified
1.Many suppliers is the traditional Amer...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Electronic...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Vertical i...
View Answer

Correct Answer
verified
Daily cost of holding the item is .22(75...
View Answer

Correct Answer
verified