question

Waterways are an attractive distribution system when speed is more important than shipping cost. TRUE/FALSE

answer

FALSE. -Waterways are not speedy.

question

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

answer

FALSE. -It is strategic.

question

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. TRUE/FALSE

answer

FALSE. -Includes all materials.

question

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

answer

TRUE.- Blanket orders

question

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

answer

TRUE. -Savings in supply chain

question

In the make-or-buy decision, which of the following is a reason for making an item?

answer

*LOWER PRODUCTION COST* NOT: -management can focus on its primary business -inadequate capacity -reduce inventory costs

question

Which distribution system is the fastest growing mode of shipping?

answer

AIRFREIGHT

question

In supply chain management, ethical issues:

answer

*ALL ARE TRUE* -are particularly important because of the enormous opportunities for abuse -may be guided by the company rules and codes of conduct -become more complex the more global is in the supply chain -may be guided by the principles and standards of the Institute for Supply Management

question

NOT a supply chain strategy:

answer

-short-term relationships with few suppliers

question

Supply chain strategies:

answer

-negotiation with many suppliers -vertical integration -keiretsu -virtual companies

question

One classic type of negotiation strategy is the market-based price model. TRUE/FALSE.

answer

TRUE. -Classic type of negotiation strategy is market-based price model.

question

Benchmark firms have driven down costs of supply chain performance. TRUE/FALSE.

answer

TRUE. -Benchmark firms have driven down costs.

question

Bar code and radio frequency technology, like that used to track UPS or FedEx packages on their global journeys, can also be used to track objects within the boundaries of a warehouse or shop. TRUE/FALSE.

answer

TRUE. -Bar code and radio frequency can be used to track objects within warehouse or shop

question

OUTSOURCING:

answer

-transfers traditional internal activities to outside vendors -utilizes the efficiency which comes with specialization -lets the outsourcing firm focus on its critical success factors

question

Term used to describe the outsourcing of logistics.

answer

-Third-Party Logistics

question

NOT an opportunity for effective management in the supply chain?

answer

-Local optimization

question

Opportunities for effective management in the supply chain?

answer

-accurate "pull" data -vendor managed inventory -postponement -channel assembly

question

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

answer

TRUE. -Bullwhip effect causes increasing fluctuations in orders

question

What distribution system offers quickness and reliability when emergency supplies are needed overseas?

answer

-Airfreight offers quickness and reliability

question

Keiretsus offer a middle ground between few suppliers and vertical integration. TRUE/FALSE.

answer

TRUE. -Keiretsus offers middle ground

question

Logistics management can provide a competitive advantage through improved customer service. TRUE/FALSE.

answer

TRUE. -Logistics mgmt can provide competitive advantage

question

Type of negotiating strategy that requires the supplier to open its books to the purchasers.

answer

-Cost-based price model

question

Improvements in security, especially regarding the millions of shipping containers that enter the United States each year, are being held back by the lack of technological advances. TRUE/FALSE

answer

FALSE. -Improvements in security are being improved by technological advances.

question

Keeping a product generic for as long as possible before customizing is known as:

answer

-->postponement

question

What is *NOT* a condition that favors the success of vertical integration?

answer

-->small market share

question

What are conditions that favor the success of vertical integration?

answer

-availability of capital -availability of managerial talent -required demand

question

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

answer

-->drop shipping

question

Vertical integration, whether forward or backward, requires the firm to become more specialized. TRUE/FALSE

answer

FALSE. -Vertical integration does not require a firm to become more specialized, and it does not move forward or backward. It moves up and down.

question

The Japanese concept of a company coalition of suppliers is:

answer

-->keiretsu

question

"Opportunities" for supply chain management:

answer

-postponement -drop shipment -blanket orders -channel assembly

question

*NOT* an opportunity for supply chain management:

answer

-->line balancing

question

In several industries, online exchanges have been created by buyers. TRUE/FALSE.

answer

TRUE. -Online exchanges have been created by buyers.

question

Consider a firm with a 2007 net income of $20 million, revenue of $60 million and cost of goods sold of $25 million. If the balance sheet amounts show $2 million of inventory and $500,000 of property, plant & equipment, what is the inventory turnover?

answer

--> $12.50

question

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

answer

FALSE. -Choosing suppliers primarily on response or differentation is not a low cost strategy.

question

One dollar saved in purchasing is:

answer

-->worth even more than a dollar earned in sales revenue

question

*NOT* a concern of the supply chain:

answer

-->maintenance scheduling

question

Concerns of the supply chain:

answer

-warehousing and inventory levels -credit and cash transfers -suppliers -distributors and banks

question

A reduction in inventory costs is one reason for making rather than buying. TRUE/FALSE.

answer

FALSE. -A reduction in inventory costs would occur with buying rather than making.

question

Vendor Managed Inventory is a form of outsourcing. TRUE/FALSE.

answer

TRUE. -Vendor Managed Inventory is a form of outsourcing

question

In the make-or-buy decision, one of the reasons for making is:

answer

--> to assure adequate supply in terms of quantity

question

A disadvantage of the "few suppliers" strategy is:

answer

-->the high cost of changing partners

question

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

answer

FALSE. -The firm should not invest aggressively to reduce product lead time as a low cost strategy.

question

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

answer

FALSE. -Unethical behavior has increased.

question

Which of the following is an advantage of the postponement technique?

answer

-->reduction in inventory investment

question

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

answer

TRUE. -Outsourcing is a form of specialization so the firm can focus on its critical success factors.

MGT 3200- Chapter 11: Supply Chain Management – Flashcards

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