question

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.

question

E-commerce involves business-to-business (B2B) interaction only. True False

answer

False

question

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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