Question 1

1. Volkswagen\'s Rio de Janeiro plant is an excellent example of traditional supply chain management.

Accepted Answer

False

Question 2

2. 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

False

Question 3

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

Accepted Answer

False

Question 4

4. 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.

Accepted Answer

False

Question 5

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

Accepted Answer

True

Question 6

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

Accepted Answer

False

Question 7

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

Accepted Answer

False

Question 8

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

Accepted Answer

True

Question 9

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

Accepted Answer

False

Question 10

10. Outsourcing refers to transferring a firm\'s activities that have traditionally been internal to outside vendors in other countries.

Accepted Answer

False

Question 11

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

Accepted Answer

True

Question 12

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

Accepted Answer

False

Question 13

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

Accepted Answer

True

Question 14

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

Accepted Answer

False

Question 15

15. Because the supply chain has become so electronic and automated, opportunities for unethical behavior have been greatly reduced.

Accepted Answer

False

Question 16

16. With the many-suppliers strategy, the order usually goes to the supplier that offers the best quality.

Accepted Answer

False

Question 17

17. Developing long-term, \"partnering\" relationships with a few suppliers is a long-standing American purchasing strategy.

Accepted Answer

False

Question 18

18. Vertical integration, whether forward or backward, requires the firm to become more specialized.

Accepted Answer

False

Question 19

19. A fast-food retailer that acquired a spice manufacturer would be practicing backward integration.

Accepted Answer

True

Question 20

20. Keiretsus offer a middle ground between few suppliers and vertical integration.

Accepted Answer

True

Question 21

21. If the purchasing firm and the supplying firm have compatible corporate cultures, substantial efficiencies related to the use of independent specialists, each with their objectives, will be lost.

Accepted Answer

False

Question 22

22. The bullwhip effect refers to the increasing fluctuations in orders that often occur as orders move through the supply chain.

Accepted Answer

True

Question 23

23. Vendor Managed Inventory is a form of outsourcing.

Accepted Answer

True

Question 24

24. In the vendor evaluation phase, most companies will use the same list of criteria and the same criteria weights.

Accepted Answer

False

Question 25

25. One classic type of negotiation strategy is the market-based price model.

Accepted Answer

True

Question 26

26. Drop shipping results in time and shipping cost savings.

Accepted Answer

True

Question 27

27. The supply chain management opportunity called postponement involves delaying deliveries to avoid accumulation of inventory at the customer\'s site.

Accepted Answer

False

Question 28

28. Channel assembly, which sends components and modules to be assembled by a distributor, treats these distributors as manufacturing partners.

Accepted Answer

True

Question 29

29. Blanket orders are a long-term purchase commitment to a supplier for items that are to be delivered against short-term releases to ship.

Accepted Answer

True

Question 30

30. Internet purchasing may be part of an integrated enterprise resource planning (ERP) system.

Accepted Answer

True

Question 31

31. Waterways are an attractive distribution system when speed is more important than shipping cost.

Accepted Answer

False

Question 32

32. Logistics management can provide a competitive advantage through improved customer service.

Accepted Answer

True

Question 33

33. With the growth of just-in-time practices, railroads have made large gains in the share of the nation\'s transport that they haul.

Accepted Answer

False

Question 34

34. Improvements in security, especially regarding the millions of shipping containers that enter the U.S. each year, are being held back by the lack of technological advances.

Accepted Answer

False

Question 35

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

Accepted Answer

True

Operations True/False 11 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards