Ch. 11 Supply Chain Management – Flashcards
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A supply chain ends with
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a satisfied customer
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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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What is transferring a​ firm's activities that have traditionally been internal to external​ suppliers?
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outsourcing
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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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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 could reduce distribution​ risk?
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careful selection, monitoring and effective contracts with penalties
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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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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.
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vendor-managed inventory
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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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Trucking
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is increasingly using computers to manage its operations.
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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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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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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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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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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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Which of the following mitigation tactics could reduce economic​ risk?
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purchasing contracts that address price fluctuations
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Airfreight
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is a​ fast-growing mode of shipping.
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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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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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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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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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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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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.
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postponement
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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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Which of the following statements is NOT one of the response strategy​ decisions?
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father and communicate market research data
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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 true regarding channel​ assembly?
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Channel assembly sends individual​ components, modules, and finished​ products, to the distributor.
