The objective of every supply chain is to
A) minimize the overall cost generated.
B) maximize the overall value generated.
C) minimize the cost to the manufacturer.
D) maximize the profit of the manufacturer.
Most strategies that an aggregate planner actually uses are in combination and are
referred to as the
A) adjustable strategy.
B) chase strategy.
C) level strategy.
D) mixed strategy.
The lack of supply chain coordination on various measures of performance has costs
associated with it. Which of the following is one of these costs?
A) Quality
B) Reliability
C) Manufacturing
D) Pricing
Building some over-capacity in the supply chain network and making the capacity
flexible allows a firm to alter production flows within the supply chain to
A) produce less in facilities that have a lower cost based on current exchange rates.
B) produce more in facilities that have a lower cost based on current exchange rates.
C) produce more in facilities that have a higher cost based on current exchange rates.
D) produce less in facilities that have the same cost based on current exchange rates.
In general, traditional brick and mortar retail sales outperform online sales along the
dimension of
A) product variety.
B) efficient funds transfer.
C) product returns.
D) order status tracking.
The goal of optimization in revenue management is to identify a tactic
A) using forecasts of customer behavior that will be most effective.
B) using linear regression that will maximize revenue.
C) using linear regression that will minimize cost.
D) that will not have to be altered.
The cycle view of the supply chain is useful when considering operational decisions,
because
A) it categorizes processes based on whether they are initiated in response to or in
anticipation of customer orders.
B) it specifies the roles and responsibilities of each member of the supply chain.
C) processes are identified as either reactive or speculative.
D) it focuses on processes that are external to the firm.
As the ratio of the cost of overstocking to the cost of understocking gets smaller,
A) the optimal level of product availability becomes irrelevant.
B) the optimal level of product availability decreases.
C) the optimal level of product availability remains stable.
D) the optimal level of product availability increases.
Which of these statements about use fees for a highway is best?
A) A flat rate results in lower use by most individuals.
B) A flat rate results in higher use by most individuals.
C) A flat rate has no impact on use by most individuals.
D) A fee based on congestion results in higher use by most individuals.
Sturdy little donkeys are used to carry corpulent tourists up the Santorini caldera to the
town of Fira. One cruise line that routinely docks at the port is considering a plan to
maintain their own donkey herd, which will cost them $15,000 per thousand tourists.
The number of tourists needing this service is normally distributed, with a mean of
Usually, this is enough donkey capacity, but occasionally the cruise line rotates a bigger
ship through this route and the excursion director must purchase donkey capacity on the
spot market, where is costs $20 per tourist.
Once a local donkey herder learns of the cruise line’s plan, he raises his donkey rental
price to $25 per tourist. How many donkeys should be in the cruise line’s herd?
A) 9,111
B) 8,971
C) 9,139
D) 8,707
Which of the following would not be the result of a poor/inappropriate distribution
network?
A) High profitability
B) Low level of customer service
C) High cost
D) Poor profitability
A cap and trade system can achieve price stability as long as
A) a price floor is established.
B) intertemporal banking of emission allowances is allowed.
C) both a price floor and intertemporal banking of emissions allowances are allowed.
D) both a price floor and a price ceiling are established.
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.) If each of his friends
purchases only one box, how many friends will he turn away because he runs out of
boxes of souvenirs?
A) 5
B) 3
C) 2
D) 1
A company’s product development 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.
George takes an eclectic mix of spices to make his authentic jerk seasoning as a rub for
chicken, pork, and fish. The ingredients and packaging cost $1.50 and he sells the
packets by the case to Jerk Stores in the Caribbean for $2.50 per packet. Tourists to the
islands gladly pay $8.75 for these packets, eager to host their friends for an authentic
Caribbean meal and bore them with vacation photos upon their return. The demand for
the packets is normally distributed, with a mean of 2500 packets and a standard
deviation of 600.
Sales efforts and orders peak near the end of any month, quarter, or other evaluation
period. This is commonly referred to as
A) the hockey stick phenomenon.
B) the student syndrome.
C) Murphy’s Law.
D) the Central Limit Theorem.
Scope of strategic fit refers to both the
A) function within the firm and the satisfaction of the customer.
B) satisfaction of the customer and the profits returned to the shareholders.
C) function within the firm and stages across the supply chain.
D) profits returned to the shareholders and the stages across the supply chain.
The student chapter of the Association of Information technology Professionals (AITP)
notices the success that the APICS student chapter has with their traditional barbecue
sauce fundraiser. Blinded by their jealousy, the club officers decide to sell a competing
product, clocks made out of junk computer parts that the club sponsor whips up in his
garage. Club officers set up a card table in the atrium of the business building and take
turns staffing it for the duration of the computer clock season, which is four months.
Twenty-five years of experience have revealed that demand varies depending on the
month of the season. Customer demand in the first month can be described as 20-p1, in
the second month as 20-1.4p2, in the third month 20-1.8p3, and in the fourth month
20-2.2p4.
The components needed to produce a computer clock cost twenty-five cents. How many
clocks should the AITP club produce?
A) 39
B) 47
C) 55
D) 63