Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
The drive for strategic fit should come from
A) the supply chain manager.
B) the strategic planning department.
C) the highest levels of the organization, such as the CEO.
D) middle management.
The opportunities from globalization are often accompanied by
A) a lack of domestic opportunities.
B) the need to eliminate the accounting function.
C) significant additional risk.
D) the need to eliminate the logistics function.
The allocation of supply sources and markets to facilities has a significant impact on
performance because
A) it cannot affect total production, inventory, and transportation costs incurred by the
supply chain to satisfy customer demand.
B) it cannot affect customer demand.
C) it affects total production, inventory, and transportation costs incurred by the supply
chain to satisfy customer demand.
D) it cannot satisfy customer demand.
A key to reducing lot size without increasing costs is to
A) reduce the holding cost associated with each lot.
B) reduce the fixed cost associated with each lot.
C) reduce the material cost associated with each lot.
D) reduce the manufacturing cost associated with each lot.
Revenue management may be defined as
A) the use of differential costing based on product or capacity availability to decrease
supply chain cost.
B) the use of differential costing based on customer segment, time of use, and product
or capacity availability to increase profitability.
C) the use of differential pricing based on customer segment, time of use, and product
or capacity availability to decrease supply chain surplus.
D) the use of differential pricing based on customer segment, time of use, and product
or capacity availability to increase supply chain surplus.
In order to reap the greatest return from the online channel for physical goods, firms
should
A) maximize the return for each distinct supply chain member.
B) minimize interactions between the buyer and the other supply chain members.
C) integrate it with their existing supply chain networks.
D) ensure that they have total ownership of the supply chain.
Improvement in supply chain performance at the result of distributors occurs for which
of the following reasons?
A) Reduction in transportation cost because of LTL shipments from manufacturers to
distributor.
B) Reduction in outbound transportation cost because the distributor combines products
from many customers into a single outbound shipment.
C) Reduction in inventory costs because distributor disaggregates safety inventory
rather than aggregating at each retailer.
D) A more stable order stream from distributor to manufacturer (compared to erratic
orders from each retailer) allows manufacturers to lower cost by planning production
more effectively.
Bahouth Ltd. is planning for the next two years of production and debating whether to
construct a large cross-dock facility with 40 truck bays or a smaller one with 20 truck
bays. The cost to build the large facility is $2 million and the cost to build the small one
is $1.2 million. If they construct a large facility and demand is as high as they hope,
then operating costs are $450,000 annually. If they construct a large facility and demand
is low, then operating costs are $300,000. If they construct a small facility and demand
is low, the operating costs are $275,000 but if they experience high demand, the
operating cost of a small facility increases to $600,000. After having conducted some
market research, they feel that the likelihood of high demand is 0.7 and the likelihood
of small demand is 0.3.
Use the information from Scenario 6.1 to determine the likelihood of high demand that
would make the decision maker indifferent between the two alternatives for a two year
operating time.
A) 0.86
B) 0.72
C) 0.28
D) 0.14
Predictable variabilityis
A) change in demand that can be forecasted.
B) change in demand that cannot be forecasted.
C) change in demand that has been planned.
D) change in demand that has been scheduled.
The present value of future cash flow is found by
A) locating the correct factor on a z-table.
B) using a discount factor.
C) plotting the function on a graph.
D) adding the total of all future cash flows.
The key to which capacity management approach would involve having both volume
(fluctuating demand from a manufacturer) and variety flexibility (demand from several
manufacturers) to be sustainable?
A) Time flexibility from workforce
B) Use of seasonal workforce
C) Use of subcontracting
D) Use of dual facilities-dedicated and flexible
A beekeeper sends out crates of honey to a number of customers. The shipping cost is a
function of the gasoline prices that day and the size of the truck used for delivery. For
any shipment exceeding 3000 pounds, the truck rental is $600 and for a shipment
weight less than 3000, the truck rental is $450.
What is the average outbound transportation cost?
A) $4.34 per pound
B) $4.14 per pound
C) $4.24 per pound
D) $4.44 per pound
Companies in the same industry often select very different distribution networks
because
A) some companies are poorly run.
B) different companies try to avoid using the same approach.
C) different companies have different objectives for their supply chain.
D) all of the above
The following warehousing methodology is one in which goods are not actually
warehoused in a facility. Instead, trucks from suppliers, each carrying a different type of
product, deliver goods to a facility. There the inventory is broken into smaller lots and
quickly loaded onto store-bound trucks that carry a variety of products, some from each
of the supplier trucks.
A) Warehouse unit storage
B) Stock keeping unit (SKU) storage
C) Job lot storage
D) Cross-docking
The planning horizon is
A) the time period over which the aggregate plan is to produce a solution.
B) the duration of each time period in the aggregate plan.
C) the length of time required to produce the aggregate plan.
D) the solution to the aggregate plan.
The ________ strategy results in a peak during the discount week, often followed by a
steep drop in demand during the following weeks.
A) Everyday low pricing
B) High-low pricing
C) Fixed price
D) Menu pricing
Total ordering and holding costs
A) are relatively stable.
B) are relatively stable around the economic order quantity.
C) are relatively unstable around the economic order quantity.
D) are unstable.
Which of these has the broader range?
A) Intrafunctional scope
B) Intercompany scope
C) Interfunctional scope
D) Intraoperational scope
The traditional fundraiser for the student chapter of APICS is pint mason jars filled with
a tangy barbecue sauce that the club sponsor whips up in his kitchen. Club officers set
up a card table in the atrium of the business building and take turns staffing it for the
duration of the barbecue season, which is four months. Eighteen sad 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 400-p1, in the second month as
400-1.4p2, in the third month 400-1.8p3, and in the fourth month 400-2.2p4.
Responding to customer complaints (primarily from period 1 purchasers) the student
APICS chapter decides to use static pricing over the four month season. What is the
total revenue for the season's sales at the optimal price?
A) $49,490.00
B) $494,747.50
C) $50,000.00
D) $50,247.50
