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The two major types of facilities are production sites and storage sites.
A lack of coordination occurs either because different stages of the supply chain have
objectives that conflict or because information moving between stages gets delayed and
distorted.
Whether the optimal level of availability is high or low depends on where a particular
company believes they can maximize profits.
Companies using seasonal inventory will maintain a level inventory increase rate of
production for periods of high demand.
The cost of understockingis denoted by Cuand is the margin lost by a firm for each lost
sale because there is no inventory on hand.
A supply chain can use a high level of product availability to improve its
responsiveness and attract customers.
Salespeople must understand the revenue management tactic in place so they can align
their sales pitch accordingly.
Distribution occurs between every pair of stages in the supply chain.
Transportation costs increase as the number of facilities is increased.
Warehouse unit storage is the warehousing methodology that uses a traditional
warehouse to store all of one type of product together.
Cycle inventory exists because producing or purchasing in large lots allows a stage of
the supply chain to exploit economies of scale and increase cost.
The moving average forecastmethod is used when demand has an observable trend or
seasonality.
When a single stage controls replenishment decisions for the entire chain, the problem
of multiple forecasts is magnified and coordination within the supply chain follows.
The forecasting function is not necessary for most revenue management systems.
A facility located primarily to obtain access to knowledge or skills that may exist within
a certain region is
A) an offshore facility.
B) a source facility.
C) a server facility.
D) an outpost facility.
The presence of lead paint in some of its most popular toys forced ________ to recall
hundreds of thousands of toys sold between April and July of 2007.
A) Walmart
B) Hasbro
C) Mattel
D) Remco
Network design decisions have a significant impact on performance because they
A) determine the customer demand.
B) determine the supply chain conflagration.
C) set constraints within which inventory, transportation, and information can be used
to either decrease supply chain cost or increase responsiveness.
D) set constraints within which inventory, transportation, and information can be used
to either increase supply chain cost or decrease responsiveness.
The most common form of collaboration observed in practice is
A) store replenishment.
B) retail event.
C) collaborative assortment.
D) distribution center replenishment.
The rising popularity of bubble and squeak as a breakfast item on the menu has resulted
in a steady demand for peas. Over the course of the past week, 457 patrons have
ordered the hearty breakfast and each serving contains a half cup of English peas. It
costs two cents to hold a half cup of peas in inventory for a year and $3 to place an
order (remember they come all the way from England!). It takes two weeks to ship a
container from England loaded with peas.
The diner orders at the economic order quantity but an analysis of dates on the cans of
peas revealed that the flow time was actually 5 weeks. A quick check revealed that the
computer had automatically adjusted up the economic order quantity as demand had
risen during the past few months. What is the new weekly demand for English peas?
A) 234 half cups
B) 78 half cups
C) 312 half cups
D) 156 half cups
Inventory holding costs would include which of the following?
A) Transportation cost
B) Buyer time
C) Obsolescence cost
D) Receiving cost
A third party can increase the supply chain surplus by aggregating demand across
multiple firms and gaining production economies of scale that no single firm can on its
own. This is called
A) capacity aggregation.
B) inventory aggregation.
C) warehouse aggregation.
D) relationship aggregation.
If retailers sell products from competing manufacturers in a VMI system,
A) inventory at the manufacturer will be lower than optimal.
B) inventory at the manufacturer will be higher than optimal.
C) sales at the retailer will be lower than optimal.
D) inventory at the retailer will be higher than optimal.
In the context of greenhouse gas emission, the GHG protocol initiative defines levels of
scope. This level refers to the inclusion of other indirect emissions coming from sources
such as the production of purchased materials, outsourced activities, contractor owned
vehicles, waste disposal, and employee business travel.
A) Scope 1
B) Scope 2
C) Scope 3
D) Scope 4
The processes included in the replenishment cycle include
A) order arrival.
B) production scheduling.
C) retail trigger.
D) manufacturing.
