What rate of return results in a present value of $432 for $250 received one year from
now and another $250 received two years from now?
A) 9.89%
B) 10.32%
C) 10.94%
D) 11.37%
A(n) ________ measure of performance is more effective at capturing improvement.
A) scope
B) relative
C) absolute
D) statistical
Where does distribution occur in the supply chain?
A) Between every pair of stages
B) Everywhere downstream from production
C) Between production and the retailer
D) Between suppliers and retailers
In general, online sales outperform traditional brick and mortar retail sales along the
dimension of
A) order fulfillment.
B) trying before you buy.
C) product returns.
D) order status tracking.
Daily demand for cat litter at the Cat Caf© in Jones is 1500 ounces with a standard
deviation of 300 ounces. The proprietor orders the best cat litter money can buy online,
and the average shipping time is 5 days. Of course, if the order is placed at the end of
the week, then it may take a while longer to receive the shipment, so the standard
deviation of lead time is 2 days. The state health department keeps a close eye on the
condition of the Cat Caf©; a cat-loving inspector visits at least twice a week, ostensibly
to inspect, but mostly to pet his favorite Scottish Fold cat named Groundskeeper Willie.
Suppose the caf© wishes to carry 8 days of demand as their safety inventory. What
service level would they achieve?
A) 93.9%
B) 94.4%
C) 95.2%
D) 95.7%
The fact that each stage in a supply chain forecasts demand based on the stream of
orders received from the downstream stage results in
A) forecasts based on actual consumer demand patterns.
B) a reduction in demand as we move up the supply chain from the retailer to the
manufacturer.
C) a magnification of fluctuations in demand as we move up the supply chain from the
retailer to the manufacturer.
D) an increase in forecast accuracy.
One appropriate measure to reduce replenishment lead times is to
A) reduce flexibility.
B) increase the planning horizon.
C) order electronically.
D) average the aggregate plans from each supply chain member.
The taco stand in the atrium of the new College of Business building carried two items,
fish tacos and chicken tacos. The fish tacos sell for $15 and are made out of $5 of
ingredients and the chicken tacos sell for $10 and are made out of $4 of ingredients.
Some days the taco stand owner has only chicken at his disposal, so he makes nothing
but chicken tacos, and some days the opposite is true and he makes only fish tacos.
Thus, he is able to estimate demand for chicken tacos at 2500 per day with a standard
deviation of 600 and the demand for fish tacos at 2000 per day with a standard
deviation of 500. Any fish or chicken tacos that do not sell at the end of the day can be
sold for $1 each as bait. On days when both proteins are available, the taco stand
manager prefers to make a few of each kind. All tacos are made in his home kitchen and
then transported to campus. Due to time constraints and the capacity of his pickup truck
bed, he is limited to beginning each day with only 3000 tacos.
Faced with a 3000 taco capacity constraint, what is the optimal number of fish tacos to
prepare?
A) 2283
B) 1736
C) 1868
D) 2000
Efficient supply chains
A) respond quickly to demand.
B) have higher margins because price is not a prime customer driver.
C) maintain buffer inventory to deal with demand/supply uncertainty.
D) maximize performance at a minimum cost.
The degree of demand and price uncertainty has
A) no effect on the appropriate portfolio of long- and short-term warehousing space that
a firm should carry.
B) a limited influence on the appropriate portfolio of long- and short-term warehousing
space that a firm should carry.
C) a minor influence on the appropriate portfolio of long- and short-term warehousing
space that a firm should carry.
D) a significant influence on the appropriate portfolio of long- and short-term
warehousing space that a firm should carry.
The fundamental trade-offs available to an aggregate planner are between
A) capability, inventory, and backlog costs.
B) capability, inventory, and sales costs.
C) capacity, inventory, and backlog costs.
D) capacity, inventory, and sales costs.
A company’s supply chain strategy
A) defines the set of customer needs that it seeks to satisfy through its products and
services.
B) specifies the portfolio of new products that it will try to develop.
C) specifies how the market will be segmented and how the product will be positioned,
priced, and promoted.
D) determines the nature of procurement and transportation of materials as well as
manufacture and distribution of the product.
The Stone Lion, a bed and breakfast located in a sleepy town, caters to two groups of
customers, young couples interested in something marginally more exotic than a
staycation, and corporate clients interested in doing some team-building at a location
with no cellular service. Corporations know they can get rooms with minimal notice,
but young couples on tight budgets tend to plan well in advance of their planned stay at
the property. The corporate rate for rooms is $250 per person and the demand pattern is
normal with a mean of 20 and a standard deviation of 10. The proprietor of the Stone
Lion takes pity on the young couples and charges them only $150 for identical
accommodations.
What is the difference in the number of rooms that should be held by the Stone Lion if
the standard deviation of corporate demand increases by five and if it decreases by five?
A) 1
B) 2
C) 3
D) 4
A facility that also has low cost as its primary objective, but its strategic role is broader
than that of an offshore facility is
A) an offshore facility.
B) a source facility.
C) a contributor facility.
D) an outpost facility.
The facilities in a supply chain network must
A) at least maximize total logistics cost.
B) at least equal the number that maximizes total logistics cost.
C) at least equal the number that minimizes total logistics cost.
D) at least minimize total logistics cost.
A graphical plot depicting the level of inventory over time is
A) an inventory graph.
B) a distribution inventory.
C) an inventory drawing.
D) an inventory profile.
Good design collaboration for manufacturability and supply chain can
A) reduce product cost.
B) increase required inventories.
C) increase transportation cost.
D) decrease manufacturability.