A reduction in supply can help dramatically reduce safety inventory required without
hurting product availability.
Revenue-sharing contracts counter double marginalization by decreasing the cost per
unit charged to the retailer, thus effectively decreasing the cost of understocking.
Lot size based quantity discounts reduce the bullwhip effect within the supply chain.
Customers will have a negative perception of revenue management tactics if they are
simply presented as a mechanism for extracting maximum revenue.
An order from a lower price buyer should be accepted if the expected revenue from a
higher price buyer is lower than the current revenue from the lower price buyer.
All stages of an enterprise are involved, either directly or indirectly, in fulfilling a
customer request.
To reduce the optimal lot size by a factor of k, the fixed order cost S must be reduced by
a factor of k.
Decisions concerning the role of each facility are significant because they determine the
amount of flexibility the supply chain has in changing the way it meets demand.
Design collaboration ensures that any design changes are communicated effectively to
all parties involved with designing and manufacturing the product.
The main advantage of in-transit merge over drop-shipping is the somewhat lower
transportation cost and improved customer experience.
Which of the following is the fastest delivery method of transportation?
A) Rail
B) Truck
C) Air
D) Intermodal
________ has worked hard to reuse heat energy from boilers in its production process
and reduce its total water footprint.
A) Walmart
B) Coca-Cola
C) IBM
D) Starbucks
Decisions made during the supply chain design phase regarding significant investments
in the supply chain, such as the number and size of plants to build, the number of trucks
to purchase or lease, and whether to build or lease warehouse space,
A) can be altered in the short term.
B) cannot be altered in the short term.
C) cannot be altered in the long term.
D) can only be altered in the short term.
Which of these examples ripped from the headlines of business periodicals is most
accurate?
A) Netflix has two content delivery systems that are inexpensive to operate.
B) Blockbuster’s reliance on streaming services was overwhelmed by a lack of
bandwidth at the dawn of the 21st century.
C) Once an increase in demanded customization seized the market, Dell was unable to
rely on its retail store strategy.
D) Redbox’s reliance on streaming services ended Dell’s run as a leader in the industry.
Which element in the value chain is responsible for transforming inputs into outputs?
A) Operations
B) Marketing
C) Distribution
D) All elements of the value chain do this.
The Pay as You Throw (PAYT) model is designed to
A) increase recycling.
B) decrease throwing.
C) increase consumption.
D) decrease consumption.
Katz reports total revenue of $245,600, cost of goods sold of $18,950 and net income of
$121,000. Their total assets are $585,000 and total liabilities are $250,000. What is their
return on equity (ROE)?
A) 36.12%
B) 48.40%
C) 20.68%
D) 41.98%
Decisions made during the supply chain design phase regarding significant investments
in the supply chain, such as the number and size of plants to build, the number of trucks
to purchase or lease, and whether to build or lease warehouse space,
A) define the boundaries within which the supply chain must compete.
B) have little impact on how the supply chain must compete.
C) are irrelevant regarding how the supply chain will compete.
D) are the only consideration regarding how the supply chain will compete.
The procurement process for both direct and indirect materials should work on
A) improving coordination and visibility with the supplier.
B) decreasing the transaction cost for each order.
C) consolidation of orders to take advantage of economies of scale and quantity
discounts.
D) minimizing communication with the supplier.
As lead times decrease, supply chain managers are able to
A) better match supply with demand.
B) better match demand with supply.
C) increase supply chain cost.
D) decrease product availability.
The tenured professor routinely led student groups on factory tours in exotic locales,
and one popular destination was an island south of Miami. The students enjoyed this
happy little island and the professor liked it because he could supplement his income by
bringing back a few boxes souvenirs he could sell to his friends. The souvenirs cost the
professor $125 a box and he sells them for $290 a box. Souvenirs that dry out due to
age can be sold for $80. Experience has shown that the demand for boxes of these
souvenirs has a mean of 80 with a standard deviation of 20.
Naturally, the professor will purchase the optimal number of boxes. (He’s had a course
or two in supply chain management and knows this model well.) What is the expected
number of boxes that he doesn’t sell?
A) 5
B) 18
C) 13
D) 7
________ is a service factor performance characteristic of Retail Storage at Consumer
Pickup Sites that is lower than all other options.
A) Response time
B) Product variety
C) Product availability
D) Time to market
Incentives that focus only on the local impact of an action result in decisions that
A) do not maximize total supply chain profits.
B) maximize total supply chain profits.
C) minimize total supply chain profits.
D) minimize total supply chain cost.
The push/pull view of a supply chain holds that
A) the processes in a supply chain are divided into a series of activities performed at the
interface between successive stages.
B) all processes in a supply chain are initiated in response to a customer order.
C) all responses in a supply chain are performed in anticipation of customer orders.
D) the processes in a supply chain are divided into 2 categories depending on whether
they are initiated in response to or in anticipation of customer orders.