Operations Management Chapter 4 – Flashcards
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An organization's supply chain is facilitated by:
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an information system
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Which of the following typically represents the beginning of a supply chain?
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External suppliers
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Supply chain management is the vital business function which does not coordinate and manage:
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human resource interviews
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Typically a manufacturer will have more direct contact with which type of supplier?
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Tier one supplier
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Consider a packaged milk products supply chain. A lumber company provides wood to a paper mill, who supplies cardboard to a container manufacturer, who supplies containers to the milk products manufacturer. The lumber company is:
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a tier three supplier
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Which of the following is not a typical result of the bullwhip effect?
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Absenteeism
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Which term refers to inaccurate or distorted demand information created in the supply chain?
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Bullwhip effect
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Which of the following is not a remedy for the bullwhip effect?
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Base forecasts on demand coming from the immediate downstream customer
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Which of the following is not one of the four major causes of the bullwhip effect?
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The business cycle
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Price fluctuations follow all but which of the following marketing promotions?
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Advertising
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When do rationing and shortage gaming occur?
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Demand exceeds supply
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Collection of point-of-sale (POS) information is most useful for which bullwhip effect remedy?
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Information sharing
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The time between order placement and the receipt of goods is called ___________________.
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lead time
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Service organization supply chains are:
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similar to manufacturing organizations
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What is a network internal to an organization called?
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intranet
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What is an extension of an intranet to include suppliers and customers called?
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extranet
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Net marketplaces are designed to:
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bring together significant number of purchasing firms
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Which of the following is open to the most users?
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the Internet
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Online retailing, or B2C, has shifted:
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the power from the suppliers to the consumers
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Due to globalization, which of the following are not some commonly shared ocean shipping logistical characteristics?
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crossdocking is required
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A recent change in supply chain management has been the:
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green supply chain management requirement
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Purchasing is typically responsible for:
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monitoring supplier performance
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Which activity appears to be most frequently outsourced by large companies?
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Manufacturing
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What refers to owning or controlling sources of raw materials and components?
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Backward integration
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What term refers to processes or activities that are completed in-house?
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Insource
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What term refers to processes or activities that are completed by suppliers?
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Outsource
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A higher level of vertical integration implies:
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less outsourcing and more insourcing
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The quantity that equates the cost of making a product to the cost of buying the product is generally called what?
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Indifference point
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According to the financial calculations of the make-or-buy decision, if we need fewer units than the indifference point, then which option should we definitely choose?
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The option with the higher variable costs
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To perform the financial calculations of the make-or-buy decision, which costs are needed?
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Fixed and variable
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Which of the following is not a positive attribute of Multiple Suppliers?
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probability of assured supply is better
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In general, what comprises the bulk of the cost of goods sold?
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Materials
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A constant concern within purchasing departments is the issue of ethics in managing _______________.
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suppliers
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What are the Institute for Supply Management's principles of ethical supply chain management conduct?
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loyalty to your organization, justice to those with whom you deal, and faith in your profession
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According to several studies, what are the three most important criteria for selecting suppliers?
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Price, quality, on-time delivery
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What is the common term for a process of developing a long-term relationship with a supplier based on mutual trust, shared vision, shared information, and shared risks?
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Partnering
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Going beyond a basic partnership, an expanded partnership between a firm and its supplier implies:
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a commitment to helping each other succeed
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According to the textbook, the two kinds of partnerships are basic and what?
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Expanded
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What does the textbook define as the three most critical factors in successful partnering?
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Impact, intimacy, vision
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What term refers to attaining levels of productivity and competitiveness that are not possible through normal supplier relationships?
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Impact
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What term refers to the working relationship between partners?
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Intimacy
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What term refers to the mission or objectives of a partnership?
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Vision
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What do studies suggest are the three sources of impact?
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Reduce waste, leverage core competence, and create new opportunities
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Leveraging core competence is about sharing:
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knowledge
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Which of the following is not considered to be a characteristic of partnership relations?
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Are "arms-length" in nature
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What does ESI stand for?
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Early supplier involvement
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Early supplier involvement refers to the involvement of critical suppliers for what?
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New product design
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According to a 1996 study by the Council for Logistics Management of the third-party logistics industry, which companies are particularly likely to use third-party logistics services to handle most of their logistics needs?
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Companies engaged in international business
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Which of the following is least likely to be a benefit of implementing barcode scanners at retail store checkout registers?
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More efficient packaging of customer orders
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The discussion in the textbook implies that information sharing has shifted power in the supply chain the most to which group?
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Individual consumers
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Which type of technology provides "point-of-sale information?"
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Barcode scanners
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What does EDI stand for?
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Electronic data interchange
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Which of the following is not considered to be a benefit of EDI?
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Increased human interaction
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Some warehouses provide product mixing. This is referred to as: a) reduced value-added service for customers.
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value-added service for customers
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What is the throughput of Fingerhut's warehouse in St. Cloud, MN?
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30,000 items per hour
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What type of warehouse is used for long-term storage?
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General
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What type of warehouse is used for short-term storage, consolidation, and product mixing?
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Distribution
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What does TL stand for?
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Truckload (quantity)
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What is the process whereby shipments are transferred directly from inbound trailers to outbound trailers?
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crossdocking
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Crossdocking ____________________________________________________.
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eliminates the storage and order picking functions of a distribution warehouse while still performing its receiving and shipping functions
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Crossdocking allows the retailer to replace ______________ with information and coordination.
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inventory
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_________________ crossdocking is the receiving and consolidating of inbound supplies to support just-in-time manufacturing.
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Manufacturing
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_________________ crossdocking is the consolidating of shipments from LTL and small package industries to gain economies of scale.
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Transportation
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What is a virtual organization?
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A company that provides core functions and outsources everything else
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Benetton is well known for the practice of assembling all white sweaters and waiting to dye them much closer to the time of sale. This is an example of what?
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Postponement
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Which of the following is not an argument in favor of having a single supplier?
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Probability of assured supply is better
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Which of the following is not an argument in favor of having multiple suppliers?
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The Just-in-time philosophy can be better utilized
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Insourcing incurs an annual fixed cost of $500,000 and a variable cost of $60 per unit. Outsourcing incurs an annual fixed cost of $750,000 and a variable cost of $20 per unit. What is the indifference point between the two alternatives?
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6250 units
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What is the electronic marketplace for the auto industry?
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Covisint
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In January 2003, how many suppliers were members of Covisint?
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76,000
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Which of the following is a "buyer-side," typically industry-specific solution?
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electronic data interchange
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Which B2C model does MyPoints.com utilize?
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affiliate revenue model
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Companies want a supply chain that makes it possible to: a) manage all suppliers' development costs.
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manage and adapt to all of the business dynamics
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Which of the following is not one of the supply chain wastes the text book identifies? a) over production
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procurement purchasing delay
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Supply chain velocity refers to
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the speed at which a product moves through a pipeline from the manufacturer to the customer
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Which of the following is the term for "arranging the method of shipment for both incoming and outgoing products or material"?
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Traffic Management
