An intermediary can increase the supply chain surplus by decreasing the number of
relationships required between multiple buyers and sellers. This is called
A) capacity aggregation.
B) inventory aggregation.
C) warehouse aggregation.
D) relationship aggregation.
Distributors add value to a supply chain between a supply stage and a customer stage
A) if there is a small number of customers requiring a large amount of product.
B) if there is a large number of customers requiring a large amount of product.
C) if there are many small players at the customer stage, each requiring a small amount
of the product at a time.
D) if there are a few large players at the customer stage, each requiring a large amount
of the product at a time.
If the production technology is very inflexible and product requirements vary from one
country to another, a firm has to set up
A) local facilities to serve the market in each country.
B) a few high-capacity facilities to serve the market in each country.
C) many local facilities because this helps lower transportation costs.
D) a few high-capacity facilities because this helps lower transportation costs.
Which of the following is an approach a company can use to create a buffer for forecast
error using safety inventory?
A) Overtime
B) Carry extra workforce permanently
C) Build and carry extra inventories
D) Subcontracting
Supply chain macro processes include which of the following?
A) Internal Relationship Management (IRM)
B) Customer Relationship Management (CRM)
C) External Relationship Management (ERM)
D) Supply Chain Relationship Management (SCRM)
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.
The professor’s suitcase has room for 50 boxes of souvenirs. What is his expected
profit?
A) $10,241
B) $11,975
C) $9,863
D) $8,127
In the context of greenhouse gas emission, direct emissions
A) are controlled by the reporting entity.
B) are created through waste disposal.
C) come from utility-based services.
D) come from employee-based travel.
Situations in which the pricing policies for a product lead to an increase in variability of
orders placed are referred to as
A) incentive obstacles.
B) information processing obstacles.
C) operational obstacles.
D) pricing obstacles.
Which of the following is an advantage of distributor storage with carrier delivery?
A) Inventory cost is higher than with manufacturer storage.
B) Product variety is lower than with manufacturer storage.
C) Order visibility for the customer is easier than with manufacturer storage.
D) Higher cost to provide the same level of product availability as manufacturer
storage.
The replenishment decision in a VMI system is owned by the
A) manufacturer.
B) retailer.
C) customer.
D) cloud.
The length of the planning horizon is usually between
A) one and three months.
B) three and eighteen months.
C) one and three years.
D) three and five years.
________ reduced the amount of harmful phosphates in laundry and dish detergents in
the Americas region by 14.5 percent in 2011 with a goal of reaching a reduction of 70
percent.
A) Walmart
B) BASF
C) 3M
D) Procter & Gamble
The ________ is the party that moves or transports the product.
A) carrier
B) producer
C) shipper
D) consumer
In the pricing schedule for marginal unit quantity discounts,
A) the average costof a unit decreases at a breakpoint.
B) the average costof a unit increases at a breakpoint.
C) the marginal costof a unit decreases at a breakpoint.
D) the marginal costof a unit increases at a breakpoint.