It is much easier to return a product to an online retailer than to a traditional bricks and
mortar seller.
Time series forecasting methods are the most difficult methods to implement.
A carrier uses transportation to minimize the total cost (transportation, inventory,
information, and facility) while providing an appropriate level of responsiveness to the
customer.
The goal of aggregate planning is to build a plan that satisfies demand while
minimizing downtime.
The amount reserved for the spot market should be such that the expected marginal
revenue from the spot market equals the current revenue from a bulk sale.
A firm may choose to build a flexible global supply chain even in the presence of little
demand or supply uncertainty if certainty exists in exchange rates or prices.
A firm that uses a temporary workforce during the peak season to increase capacity to
match demand is using a seasonal workforce.
Shifting demand from peak to off-peak periods is beneficial if the discount given during
the off-peak period is more than offset by the decrease in cost because of a smaller peak
and the increase in revenue during the off-peak period.
The main advantage of a distribution network with local storage is that it can lower the
delivery cost and provide a faster response than other networks.
Financial analysis should be used as an input to decision making, not as the
decision-making process.
Customers have usually backed up words about the importance of sustainability with a
willingness to pay more for sustainable products.
The primary reason for the general lack of design for remanufacturing is that
remanufacturing is more expensive for a manufacturer.
Aggregating across products, retailers, or suppliers in a single order allows for a
reduction in lot size for individual products because fixed ordering and transportation
costs are now spread across multiple products, retailers, or suppliers.
Decisions concerning the role of each facility are significant because they determine the
amount of rigidity the supply chain has in changing the way it meets demand.
Aggregation reduces the standard deviation of demand only if demand across the
regions being aggregated is not perfectly positively correlated.
In a continuous replenishment program, the wholesaler or manufacturer replenishes a
retailer regularly based on
A) the POS data of the wholesaler.
B) the forecast of the retailer.
C) the POS data of the retailer.
D) the forecast of the manufacturer.
A company with multiple products that chooses to delay product differentiation until
closer to the point of sale is using
A) tailored sourcing.
B) quick response.
C) postponement.
D) improved forecasting.
An energy exporting country stands to gain
A) under a cap and trade system if the supply of crude is kept below the level achieved
with a price on emissions.
B) under a cap and trade system if the supply of crude is kept over the level achieved
with a price on emissions.
C) under a carbon tax system if the supply of crude is kept below the level achieved
with a price on emissions.
D) under a carbon tax system if the supply of crude is kept over the level achieved with
a price on emissions.
All raw materials, work in process, and finished goods within a supply chain are known
as
A) facilities.
B) inventory.
C) transportation.
D) information.
Craigslist and eBay are examples of
A) receivables aggregation.
B) inventory aggregation.
C) information aggregation.
D) relationship aggregation.
The most common use of information technology in transportation is to
A) determine transportation routes using software.
B) calculate shipping rates.
C) connect buyers and sellers.
D) place person to person calls using cellular technology.
Sammy’s is the hot new lunch spot among the hipsters, who flock there at noon for their
artisanal peanut butter and jelly sandwiches, which sell for $12.95. The sandwiches are
made from two slices of their own artisanal bread, which they bake continuously
throughout the day at a rate of seven loaves an hour (each loaf contains twenty slices).
The actual cost of a loaf of bread is $1 and the cost to hold a loaf is 80%, since
freshness is important in baking as well as to hipsters. The cost to run a new batch of a
dough is $3 per loaf. Sammy’s sells their sandwiches at a rate of fifty per hour.
What is the cost to run Sammy’s at the economic production lot size?
A) $5.46
B) $2.73
C) $1.36
D) $0.68
The difference between the values of the buyer and seller is referred to as the
A) value discrepancy.
B) spread.
C) bargaining surplus.
D) negotiation gap.
A fundamental aspect of successful collaboration is
A) sharing product designs.
B) identification and resolution of exceptions.
C) no stock outs.
D) complete information sharing.
Effective sourcing processes within a firm can
A) improve profits for the firm and total supply chain surplus.
B) reduce profits for the firm and total supply chain surplus.
C) reduce total supply chain surplus.
D) reduce profits for the firm.
Quite often in a VMI system, the inventory is
A) owned by the retailer before it is shipped by the supplier.
B) owned by the supplier until it is sold by the retailer.
C) sold by the supplier before it is owned by the retailer.
D) sold by the retailer before it is shipped by the supplier.
The trend corrected exponential smoothing (Holt’s Model) forecast method is
appropriate when
A) demand has observable trend or seasonality.
B) demand has no observable trend or seasonality.
C) demand has observable trend but no seasonality.
D) demand has no observable level or seasonality.
Discuss the factors driving an increased focus on sustainability.
Explain the impact of aggregation on safety inventory.
Discuss the approaches a firm can use to manage inventory to meet predictable
variability of demand.
Discuss the importance of collaboration within a supply chain when performing
aggregate planning.
Explain the 3 decision phases (categories) that must be made in a successful supply
chain.
Discuss the approaches that can be used to manage capacity to meet predictable
variability of demand.
Weekly demand for avocados at the Guac Shop is normally distributed with a mean of
2500 and a standard deviation of 650. The store manager has decided to follow a
periodic review policy to manage inventory of avocados. They plan to order every two
weeks. The farmers currently take two weeks to fill an order. Given a desired CSL of
97.5 percent, how much safety inventory should the Guac Shop carry? What should
their OUL be?
List and explain the three basic steps to achieving strategic fit.
Explain how the design of the distribution network affects the cost of the four supply
chain drivers.
Discuss the primary objective and operational parameters of aggregate planning.