If garbage collection services were billed based on the weight of refuse collected, most
people would find a way to discard less and recycle more.
Cycle inventory is inventory carried to satisfy demand that exceeds the amount
forecasted for a given period.
Greater product variety and shorter life cycles result in shorter windows of opportunity
for a supply chain to achieve fit.
Given the product variety and high demand uncertainty in most high-tech supply
chains, a significant fraction of the inventory carried is safety inventory.
Push processes may also be referred to as speculative processes.
The bullwhip effect moves a supply chain
A) away from the efficient frontier by increasing cost and decreasing responsiveness.
B) away from the efficient frontier by decreasing cost and increasing responsiveness.
C) toward the efficient frontier by increasing cost and decreasing responsiveness.
D) toward the efficient frontier by increasing cost and increasing responsiveness.
The result of each stage in the supply chain making its own separate forecast is
A) an accurate forecast.
B) a more accurate forecast.
C) a match between supply and demand.
D) a mismatch between supply and demand.
All inventory between a given stage in the supply chain and the final customer is called
the
A) cycle inventory.
B) demand inventory.
C) echelon inventory.
D) safety inventory.
Avon Barksdale’s operation uses large quantities of prepaid cell phones, on average 500
per week with a standard deviation of 45. The lead time for their own brand of prepaid
cell phones is two weeks and they have a lot size of 125 phones.
What is the standard deviation of demand during their lead time?
A) 45 phones
B) 64 phones
C) 90 phones
D) 109 phones
The objective of customer order entry is to
A) get the correct orders to customers by the promised due date at the lowest possible
cost.
B) maintain a record of product receipt and complete payment.
C) maximize the conversion of customer arrivals to customer orders.
D) ensure that orders are quickly and accurately entered and communicated to other
affected supply chain processes.
Aggregate planning solves problems involving
A) aggregate decisions and stock keeping unit (SKU) level decisions.
B) aggregate decisions or stock keeping unit (SKU) level decisions.
C) aggregate decisions rather than stock keeping unit (SKU) level decisions.
D) stock keeping unit (SKU) level decisions rather than aggregate decisions.
Activities involved in the Customer Relationship Management (CRM) macro process
include
A) planning of internal production and storage.
B) order fulfillment.
C) marketing.
D) supply planning.
As the uncertainty of supply or demand ________, the required level of safety
inventories ________.
A) grows, increases
B) increases, decreases
C) decreases, grows
D) decreases, increases
Which mode of transportation is the dominant form of freight transportation?
A) Air
B) Truck
C) Rail
D) Water
Blue Nile is an online retailer of diamonds that has used responsive transportation to
ship diamonds to customers in the United States, Canada, and several countries in
Europe and Asia. Which is the mode of transportation used with this strategy?
A) Sea
B) Rail
C) Internet
D) Air
Walmart implemented a web-based scorecard that evaluated the packaging of each
product along nine metrics which included
A) cube utilization.
B) distance traveled.
C) recycled content.
D) Both A and C
For push processes, a manager must forecast what customer demand will be in order to
A) plan the service level.
B) plan the level of available capacity and inventory.
C) plan the level of productivity.
D) plan the level of production.
A goal of any supply chain manager is to
A) increase the level of safety inventory required in a way that does not adversely affect
product availability.
B) increase the level of safety inventory required regardless of the effect on product
availability.
C) reduce the level of safety inventory required regardless of the effect on product
availability.
D) reduce the level of safety inventory required in a way that does not adversely affect
product availability.
The present value of a future stream of cash flows is what that stream
A) was worth in yesterday’s dollars.
B) is worth in today’s dollars.
C) will be worth in future dollars.
D) might be worth in future dollars.
Gang Aft Agley, a manufacturing company, faces the aggregate planning problem
shown in the table below. Cost of regular production is $5 per unit, the cost of
producing the same unit on overtime is $7.50, the cost of subcontracting is $9 per unit,
and the cost of carrying a unit in inventory from one month to the next is $2.
The labor contract at the plant prohibits both overtime and subcontracting output to
exceed 300 units in any five month window. The plant capacity is 600 units per month
produced using two shifts, regardless of the number of days in a month. By policy,
management wants to avoid stockouts.
Which of these is a constraint that is appropriate for Scenario 8.1?
A) >= 680
B) =< 0
C) + =< 300
D) =< 300
How do firms address the problems of spoilage and spill?
Describe the role of revenue management.
Explain the basic trade-off between responsiveness and efficiency for each of the major
drivers of supply chain performance.
Discuss the role of safety inventory in the supply chain and the trade-offs involved.
Describe the factors that influence supply chain network design decisions.
Describe the impact of trade promotions on cycle inventory.