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Consider the factors influencing total cost and supplier performance. Which of the
following is the LEAST quantifiable factor?
A) Supplier price
B) Supplier terms
C) Support
D) Warehousing cost
________ measures the incremental costs that are independent of the size of the order.
A) Average sale price
B) Incremental variable cost per unit
C) Incremental fixed cost per order
D) Incremental indirect cost per order
Which of the following statements about pull processes is accurate?
A) They may also be referred to as speculative processes.
B) Execution is initiated in anticipation of customer orders.
C) At the time of execution, demand must be forecast.
D) They may also be referred to as reactive processes.
Given a lot size of (which is also the average demand in a replenishment cycle),
A) the fraction of demand lost is thus ESC + Q.
B) the fraction of demand lost is thus ESC - Q.
C) the fraction of demand lost is thus ESC/Q.
D) the fraction of demand lost is thus ESC x Q.
The strategy where the production rate is synchronized with the demand rate by varying
machine capacity or hiring and laying off employees as the demand rate varies is the
A) adjustable strategy.
B) chase strategy.
C) level strategy.
D) mixed strategy.
________ typically measures the cost of bringing product into a facility as a percentage
of sales or cost of goods sold (COGS).
A) Average outbound transportation cost
B) Average inbound transportation cost
C) Average incoming shipment size
D) Average inbound transportation cost per shipment
For any supply chain, the source of revenue is generated by
A) efficient operations.
B) information flows.
C) the customer.
D) product flows.
Each stage in a supply chain is connected through the flow of products, information,
and funds. These flows often occur in both directions and are usually managed by
A) pricing department.
B) one of the stages.
C) upper management.
D) engineering department.
The ease with which the customer can place and receive their order as well as other
aspects of value that the sales staff provides is
A) customer experience.
B) order visibility.
C) product availability.
D) response time.
The appropriate discount rate used in decision tree methodology
A) should be risk-adjusted and risk may vary by period and decision node.
B) should be risk-adjusted and risk may not vary by period and decision node.
C) should not be risk-adjusted and risk may vary by period and decision node.
D) should not be risk-adjusted and risk may not vary by period and decision node.
A manufacturer of cat towers wishes to locate a super assembly facility to meet their cat
tower assembly needs for the next millennium. Currently, carpet, cylinders, yarn and
fasteners are purchased in bulk from suppliers in North Haverbrook, Ogden, and
Springfield in the quantities shown in the table. The super assembly facility would ship
to distribution centers located in Seattle, Lubbock, Nashville, and Philadelphia. The
locations of all of these cities on an x-y grid, outbound transportation costs on a ton per
mile basis, and total tonnage are all contained in the table.
What is the cost to transport 500 tons of material between the Springfield and Seattle
locations?
A) $325,000
B) $192,500
C) $682,500
D) $437,500
