With supply and demand management decisions being made independently,
A) it is increasingly difficult to coordinate the supply chain, thereby increasing profit.
B) it is increasingly difficult to coordinate the supply chain, thereby decreasing profit.
C) it is easier to coordinate the supply chain, thereby decreasing profit.
D) it is easier to coordinate the supply chain, thereby increasing profit.
The disadvantage of maintaining enough manufacturing capacity to meet demand in
any period is
A) much of the expensive capacity would go unused during most months when demand
was lower.
B) the expensive capacity would be used consistently throughout the year.
C) most of the expensive capacity would still be used during most months when
demand was lower.
D) very low inventory costs because no inventory needs to be carried from period to
period.
When all stages of a supply chain produce a collaborative forecast, it tends to be
A) much more detailed.
B) much more complex.
C) much more accurate.
D) much more flexible.
The impact of the lack of coordination on supply chain processes decreases for the
following measure:
A) manufacturing cost.
B) level of product availability.
C) transportation cost.
D) replenishment lead time.
Pricing decisions based only on revenue considerations often result in
A) a decrease in overall profitability.
B) an increase in overall profitability.
C) a decrease in overall revenue.
D) a decrease in supply chain revenue.
Facility location decisions have a long-term impact on a supply chain’s performance
because
A) it is very expensive to shut down a facility or move it to a different location.
B) it is not expensive to shut down a facility or move it to a different location.
C) it is advisable to shut down a facility or move it to a different location.
D) it is cost effective to shut down a facility or move it to a different location.
If a country has very high tariffs
A) companies either do not serve the local market or set up manufacturing plants within
the country to save on duties.
B) companies do not serve the local market.
C) companies set up manufacturing plants within the country to save on duties.
D) companies will not serve the local market or set up manufacturing plants within the
country to save on duties.
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.
Suppose Mr. Barksdale sets his reorder point at 1100 phones. What is his average cell
phone inventory?
A) 87.5 phones
B) 105 phones
C) 162.5 phones
D) 257.5 phones
Which of the following is an advantage of manufacturer/distributor storage with
customer pickup?
A) Facility costs can be very high if new facilities have to be built.
B) Transportation cost is lower than the use of package carriers, especially if using an
existing delivery network.
C) Order visibility is difficult but essential.
D) Product variety is similar to other manufacturer or distributor storage options.
It is important for the firm to structure its revenue management program in a way that
A) it is presented simply as a mechanism for extracting maximum revenue.
B) revenue increases while improving service along some dimension that is important
to customers that pay the highest price.
C) profit is maximized.
D) all of the above
Replenishment orders in multi-echelon supply chains should be
A) synchronized to increase cycle inventory and order costs.
B) synchronized to facilitate supplier evaluation and selection.
C) synchronized to keep cycle inventory and order costs low.
D) separated to increase cycle inventory and order costs.
As the total quantity for the season is broken up into multiple smaller orders, the buyer
is better able to
A) match supply and demand and increase cost.
B) match supply and demand and increase profitability.
C) match supply and demand and decrease profitability.
D) match supply and demand and decrease product availability.
A company’s marketing and sales strategy
A) defines the set of customer needs that it seeks to satisfy through its products and
services.
B) specifies the portfolio of new products that it will try to develop.
C) specifies how the market will be segmented and how the product will be positioned,
priced, and promoted.
D) determines the nature of procurement and transportation of materials as well as
manufacture and distribution of the product.
Which of the following is a technology that shares and analyzes information in the
supply chain?
A) Internet
B) Enterprise Data Planning (EDP)
C) Electronic Resource Interchange (ERI)
D) Chain Management (CM) software
In a supply chain where each stage of the supply chain independently makes its pricing
decisions with the objective of maximizing its own profit,
A) supply chain profit is lower than a coordinated solution.
B) supply chain profit is higher than a coordinated solution.
C) supply chain profit is about the same as a coordinated solution.
D) supply chain profit will be maximized.
Often, safety inventory calculations in practice
A) do not include any measure of supply uncertainty, resulting in levels that may be
higher than required.
B) do not include any measure of supply uncertainty, resulting in levels that may be
lower than required.
C) include measures of supply uncertainty, resulting in levels that may be higher than
required.
D) include any measures of supply uncertainty, resulting in levels that may be lower
than required.
Aggregate planning, to be effective, requires inputs from
A) all customers.
B) all departments.
C) all suppliers.
D) throughout the supply chain.