55. Spanish clothing retailer Zara transfers twenty product lines a year from concept to shop floor in only
four weeks because it is customer-focused, not supplier-focused. Zara is implementing which supply
chain management strategy?
a.
Lean supply chain management
b.
Reactive supply chain management
c.
Agile supply chain management
d.
Proactive supply chain management
e.
Leagile supply chain management
56. Which supply chain strategy allows the company to take advantage of many of the benefits of lean
supply chain management while still providing the agility that makes customer experiences more
desirable?
a.
Static supply chain management
b.
Reactive supply chain management
c.
Flexible supply chain management
d.
Proactive supply chain management
e.
Leagile supply chain management
57. Toyota uses a(n) _____ supply chain strategy for its Scion line of cars, in which a base model is
produced in Japan, but with the addition of many customer options either at an operation near the port
of Long Beach or at the dealer based on a customer’s specific preferences.
a.
agile
b.
leagile
c.
proactive
d.
lean
e.
reactive
58. In which type of supply chain management strategy is postponement a common occurrence?
a.
Static supply chain management
b.
Reactive supply chain management
c.
Flexible supply chain management
d.
Proactive supply chain management
e.
Leagile supply chain management
59. Which supply chain management strategy is most appropriate when aggregate customer demand is
predictable?
a.
Lean supply chain management
b.
Reactive supply chain management
c.
Agile supply chain management
d.
Proactive supply chain management
e.
Leagile supply chain management
60. Which supply chain management strategy is most appropriate when demand is unpredictable but
supply lead times are short?
a.
Lean supply chain management
b.
Reactive supply chain management
c.
Agile supply chain management
d.
Proactive supply chain management
e.
Leagile supply chain management
61. Which supply chain management strategy is most appropriate when there exists a long lead time and
unpredictable demand for a product?
a.
Lean supply chain management
b.
Reactive supply chain management
c.
Agile supply chain management
d.
Proactive supply chain management
e.
Leagile supply chain management
62. Three dimensions of supply chain networks are commonly considered by supply chain managers. They
are the horizontal structure, the vertical structure, and the:
a.
integrated structure
b.
matrix structure
c.
functional position of the firm
d.
horizontal position
e.
hierarchical structure
63. The number of suppliers or customers included within each individual tier of a supply chain is the:
a.
vertical structure
b.
horizontal structure
c.
hierarchical structure
d.
vertical position
e.
horizontal position
64. All of the following are logistics components of the supply chain EXCEPT:
a.
trade promotions
b.
production scheduling
c.
inventory control
d.
warehousing and materials-handling
e.
order processing
65. Which of the following provides the technological link connecting all of the logistics components of
the supply chain?
a.
Logistics information system
b.
Materials requirement plan
c.
EDI
d.
RFID chips
e.
Distribution resources strategy
66. One-quarter of Ace’s 60,000 SKUs are vendor-managed through software called the “Collaboration”
program. This software allows certain vendors to go online to get information to build their forecasts.
The result of this application is fewer shipments, fuller pallets, increased pallets per truck, and a
reduction in freight. Collaboration is part of Ace’s:
a.
logistics information system
b.
materials requirement plan
c.
EDI
d.
RFID chips
e.
distribution resources strategy
67. The supply chain team does all of the following EXCEPT:
a.
communicating, coordinating, and cooperating extensively
b.
embracing all parties who participate in moving the product to market
c.
typically cutting across organizational boundaries
d.
providing financing for distributors
e.
orchestrating the movement of goods, services and information from the source to the
consumer
68. Which of the following is a member of a supply chain team that moves just-picked cotton to finished
clothing and then to the consumer of that clothing?
a.
The warehouse in which the cotton was temporarily stored
b.
The ad agency that develops the promotion for the clothing
c.
The farmer who picks the cotton
d.
The trucking company that hauls the cotton to the clothing manufacturer
e.
All of the choices
69. The goal of most sourcing and procurement activities is to:
a.
reduce the cost of raw materials and supplies.
b.
provide satisfying customer service
c.
make sure the right amount of product is kept on hand
d.
identify, sort, and label goods
e.
move products from supplier to producer and from producer to buyer
70. In which logistical component of the supply chain will you find electronic data interchange a common
feature?
a.
Production scheduling
b.
Transportation
c.
Order processing
d.
Materials-handling
e.
All of these
71. _____ is the direct electronic transmission, from computer to computer, of standard business forms
between two organizations. When this technique is used, orders can become virtually paperless, and
information about the order is available to both firms.
a.
Business prioritizing
b.
Electronic data interchange
c.
Just-in-time inventory
d.
Real-time inventory
e.
Direct sourcing
72. _____ is a method of developing and maintaining an adequate assortment of materials or products to
meet a manufacturer’s or a customer’s needs.
a.
The materials-handling system
b.
An inventory control system
c.
Direct sourcing
d.
Contract logistics
e.
Warehousing
73. Upon investigating sales of a given HP printer by a retailer, the company found that orders from the
merchant exhibited far bigger movements that what was seen by changes in actual sales of the item.
This is an example of:
a.
the bullwhip effect
b.
cross-docking
c.
weak vertical structure
d.
the Doppler effect
e.
contract logistics
74. Which of the following is the inventory control system that manages the replenishment of raw
materials, supplies, and components from the supplier to the manufacturer?
a.
Electronic data interchange (EDI)
b.
Distribution resource planning (DRP)
c.
Third party logistics firm (3PL)
d.
Materials requirement planning (MRP)
e.
Activity-based costing (ABC)
75. In which logistical component of the supply chain will you find distribution resource planning (DRP) a
common feature?
a.
Production scheduling
b.
Transportation
c.
Order processing
d.
Materials-handling
e.
Inventory control
76. ZuTech makes sensitive monitors for measuring exposure to hazardous materials. ZuTech has suffered
substantial losses when moving products from the assembly line to the warehouse and shipping docks.
ZuTech should consider reducing the number of times an item is moved in the warehouse by installing
a(n):
a.
inventory control system
b.
materials-handling system
c.
safety procedure to manage SKUs
d.
order-processing system
e.
outsourcing system
77. All of the following are types of inputs used in both materials requirement planning and distribution
resource planning EXCEPT:
a.
the source of funding
b.
lead times
c.
the mode of transportation to be used
d.
outstanding orders
e.
sales forecasts
78. The goal of inventory control is to:
a.
minimize inventory levels while maintaining an adequate supply to meet customer
demands
b.
maximize inventory levels to prevent any possibility of stockouts
c.
determine order timing and order quantity
d.
estimate proper usage rates
e.
integrate JIT to reduce risks of obsolescence, theft, and damage
79. _____ provides time utility to buyers and sellers and aids manufacturers in managing supply and
demand.
a.
Containerization
b.
Distribution
c.
Storage
d.
Direct sourcing
e.
Channelization
80. When using _____, suppliers assume the responsibility for managing inventories at customer locations
through the use of highly automated electronic messaging systems, which allow the exchange of
information between vendors and customers.
a.
automatic replenishment programs
b.
distribution resources programs
c.
materials requirement planning
d.
automated logistics
e.
dynamic order fulfillment programs
81. Which of the following moves inventory into, within, and out of a warehouse?
a.
Inventory control system
b.
Multichannel system
c.
ERP control system
d.
Freight forwarder
e.
Materials-handling system
82. Cross-docking:
a.
increases the opportunity costs for a firm
b.
allows for companies to load and off-load products with minimal warehousing
c.
manages the replenishment of goods from the manufacturer to the final consumer
d.
increases the costs of insurance on stored products
e.
triggers shipments of product only after the product is sold to the customer
83. The goal of any effective materials-handling system is to:
a.
reduce the time of the order-processing system
b.
optimize the inventory control system
c.
increase safety procedures
d.
move items quickly with minimal handling
e.
reduce the length of time a product is in the transportation subsystem
84. A materials-handling system does all of the following EXCEPT:
a.
dispatching the goods to temporary storage areas
b.
selecting goods for shipment
c.
receiving goods into the warehouse
d.
transports the goods by rail, motor carriers, pipelines, or other modes
e.
identifying, sorting, and labeling the goods
85. All of the following are criteria used to choose a mode of transportation EXCEPT:
a.
diversity
b.
cost
c.
transit time
d.
reliability
e.
traceability
86. The mode of transportation that provides the most accessibility is:
a.
pipelines
b.
airfreight
c.
truck freight
d.
water transport
e.
railroad
87. The relative ease with which a shipment can be located and transferred is:
a.
dependability
b.
traceability
c.
capability
d.
transit time
e.
observability
88. The growers of Vidalia onions have determined that their chief priority for choosing a transportation
mode within the United States is transit time. However, this must be tempered by practical cost
considerations. In light of these considerations, Vidalia onion growers should use _____ to ship their
onions.
a.
railroads
b.
motor carriers (trucks)
c.
airplanes
d.
water transportation
e.
pipelines
89. One major advantage of pipelines over other modes of transportation is:
a.
availability
b.
points served
c.
flexibility
d.
speed
e.
reliability
90. Which of the following describes a disadvantage associated with water transportation?
a.
Cannot be used for international trade
b.
High cost
c.
Capability
d.
Lack of speed
e.
Product weight restrictions
91. Which of the following transportation modes can most easily determine the location of a package en
route between shipper and receiver?
a.
Air
b.
Truck
c.
Rail
d.
Pipe
e.
Water
92. The Canadian lobster harvest requires special handling coupled with rapid transportation to ensure the
cargo reaches destinations alive. The favored transportation mode would be:
a.
air
b.
water
c.
truck
d.
pipeline
e.
rail
93. _____ are standard measures that can be used repeatedly to assess performance on a supply-chain
related process.
a.
Metrics
b.
Assessment programs
c.
Proactive gauges
d.
Qualifiers
e.
Situational appraisals
94. A recent Aetna health plan customer satisfaction survey measured consumer satisfaction in seven
areas: overall satisfaction, willingness to recommend a plan, on-line tools, customer service, complaint
resolution, plan communication and enrollment process. These seven areas represent _____ that can be
used to assess performance again and again.
a.
metrics
b.
assessment programs
c.
proactive gauges
d.
qualifiers
e.
situational appraisals
95. From the perspective of the supply chain manager, all of the following are qualities characteristic of
good metrics EXCEPT:
a.
It uses multiple measures of profitability
b.
It promotes behaviors that are consistent with achieving the objectives
c.
It allows the company to use benchmarks
d.
It allows the firm to monitor its progress toward the achievement of objectives
e.
It motivates continuous improvement
96. Because supply chain management is concerned with the performance of all firms in the system
simultaneously, any performance measurement system used to evaluate a supply chain must address
both the chain itself and all of the processes and firms that added together compose it. One method
used is called the:
a.
Customer-Supplier Relationship Approach
b.
Vroom-Yetton Model
c.
Learning and Growth Model
d.
Balanced Scorecard Approach
e.
Functional Synchronization Model
97. At each tier of the supply chain, the Balanced Scorecard Approach addresses four areas of
performance. They are customer-related performance metrics, financial metrics, business process
metrics, and _____ metrics.
a.
product development and commercialization
b.
materials handling
c.
learning and growth
d.
order fulfillment
e.
integration
98. General Mills has reengineered its packaging. After doing so, _____ metrics, as defined by the
Balanced Scorecard Approach, revealed the company had saved 890,000 pounds of paper fiber and
eliminated 500 trucks from the road the first year the new packaging was on store shelves.
a.
innovation
b.
financial
c.
commercialization
d.
integration
e.
customer
99. Kautex–Unipart is an automotive component manufacturer based in the UK. It supplies BMW’s Mini
car production line with fuel tanks. This contract with BMW has benefited the company as it now has
up to six days’ visibility of orders, which increases flexibility in how to use its resources. The
Balanced Scorecard Approach indicates that the component manufacturer has improved its _____
metrics.