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The bullwhip effect
A) positively impacts performance at every stage.
B) hurts the relationships between different stages of the supply chain.
C) enhances the relationships between different stages of the supply chain.
D) results in improved on-time order delivery.
Allocating too little capacity results in
A) good responsiveness if demand is not satisfied or low cost if demand is filled from a
distant facility.
B) good responsiveness if demand is not satisfied or high cost if demand is filled from a
distant facility.
C) poor responsiveness if demand is not satisfied or low cost if demand is filled from a
distant facility.
D) poor responsiveness if demand is not satisfied or high cost if demand is filled from a
distant facility.
In almost all countries, roads, seaports, airports, rail and canals have this in common.
A) They were built and/or managed by the government.
B) They are located near the water.
C) They are the source of most of the tax revenue for municipalities.
D) They are staffed by foreign nationals.
A firm can vary supply of product by controlling
A) inventory.
B) pricing.
C) demand.
D) revenue.
In the textbook, it mentions that Walmart has mandated the use of a specific technology
by its top 100 suppliers at the level of product cases. What is the technology?
A) RFID
B) ERP
C) SCM
D) EDI
________ is the practice whereby a firm charges differential prices to maximize profits.
A) Optimal lot sizing
B) Fixed pricing
C) Nonperishable pricing
D) Price discrimination
The value that potential customers place on product cost and delivery time determines a
company's
A) customer needs.
B) competitive strategy.
C) supply chain surplus.
D) product life cycle.
The forecasting function is
A) the foundation of any revenue management system.
B) unnecessary for a revenue management system.
C) an added plus for any revenue management system.
D) likely to create problems for any revenue management system.
The quantity of inventory that a stage of the supply chain either produces or purchases
at a given time is
A) an order.
B) a job.
C) a shipment.
D) a lot or batch.
The use of differential pricing should
A) decrease total profits for a firm.
B) increase total profits for a firm.
C) increase capacity for a firm.
D) decrease capacity utilization for a firm.
Seasonal inventory should be used when
A) a company can rapidly change the rate of its production system at a very low cost.
B) changing the rate of production is expensive (e.g., when workers must be hired or
fired).
C) adjusting to a period of low demand without incurring large costs.
D) the world is perfectly predictable.
Which of these statements about distribution networks is best?
A) A manufacturer that owns their own distribution network cannot control the
network's actions.
B) Customers are willing to have a relationship built around high value, specialized
products.
C) Distribution networks that have identical physical flows but different ownership
structures have identical performance.
D) It is important to have static distribution networks.
Bahouth Ltd. is planning for the next two years of production and debating whether to
construct a large cross-dock facility with 40 truck bays or a smaller one with 20 truck
bays. The cost to build the large facility is $2 million and the cost to build the small one
is $1.2 million. If they construct a large facility and demand is as high as they hope,
then operating costs are $450,000 annually. If they construct a large facility and demand
is low, then operating costs are $300,000. If they construct a small facility and demand
is low, the operating costs are $275,000 but if they experience high demand, the
operating cost of a small facility increases to $600,000. After having conducted some
market research, they feel that the likelihood of high demand is 0.7 and the likelihood
of small demand is 0.3.
Use the information from Scenario 6.1 to determine the expected cost of operating a
large facility for two years.
A) $810,000
B) $450,000
C) $405,000
D) $2,810,000
A downside to which contract is that it leads to surplus inventory that must be salvaged
or disposed?
A) Buyback or returns contract
B) Revenue-sharing contract
C) Quantity flexibility contract
D) Hybrid contract
In order to achieve the greatest value
A) supply planning and revenue management should be performed separately.
B) supply planning should be completed first.
C) supply planning and revenue management should be combined.
D) revenue management should be completed first.
Firms focusing on responsiveness tend to
A) locate facilities close to the market they serve.
B) locate facilities very far from the market they serve.
C) find the lowest cost location for their manufacturing facilities.
D) select a high-cost location to be able to react slowly.
